A bill to regulate crypto was voted down in the US Senate on Tuesday, after all Democrats and a few Republicans blocked a procedural vote.
The Senate voted 49 to 50 on a motion to continue consideration of the Clarity Act, falling short of the required 60-vote threshold. This marks a major setback for the crypto sector, which has long been pushing for the law.
The vote came after a series of last-minute attempts to reach an agreement between Republicans and Democrats who are favourable towards crypto.
Roughly a dozen Democrats were seen as potential yes votes. In the end they decided not to back the legislation, after both parties failed to reach agreement on ethical rules. Concerns remain about President Donald Trump and his family’s involvement in the crypto sector.
Republican senator Cynthia Lummis launched a fierce attack on her Democratic colleagues on Tuesday, saying the vote had ‘proven that they were never really serious about protecting consumers and maintaining American leadership’.
The new bill bans government officials – including the president – from issuing or sponsoring crypto assets.
Initially, only the Department of Justice (DoJ) was given the authority to enforce these rules. After criticism from Democrats, this was amended so that state attorneys general can also bring cases against the department or crypto exchanges for violations.
According to the Democrats, this still did not go far enough. Senator Raphael Warnock (a Democrat from Georgia) said on Monday that there were ‘a whole lot of loopholes’ in the new ethics provisions.
The Bitcoin price, which recently climbed to a high of $82,000, has fallen to $75,000 but at time of writing was trading at $76,433.
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