Bitcoin, COIN, CRCL Under Pressure After CLARITY Act Vote Stalls: Here’s What Crypto Traders Are Watching

The crypto market’s biggest legislative catalyst this year hit a procedural roadblock again. The Digital Asset Market Clarity Act (CLARITY Act) did not advance in the Senate on Tuesday, prompting crypto industry leaders to call on U.S. regulators to write rules for the sector, which Gemini co-founder Tyler Winklevoss has called a “Plan B”.

Senate Daily Press Gallery reported that the Senate rejected the motion to invoke cloture on the motion to proceed to the bill (49-50). The motion required 60 votes. The outcome came hours after crypto firms made a last-ditch effort for the bill.

Winklevoss said the industry would now shift to "Plan B." In an X post, he directed his comments toward Securities and Exchange Commission (SEC) Chair Paul Atkins and Commodity Futures Trading Commission (CFTC) Chair Michael Selig, claiming the two would be "writing Clarity through rulemaking."https://x.com/tyler/status/2100001803400024575

Chairman Paul Atkins pointed out the gap a day before. On Monday at the Solana Policy Institute summit in Washington, Atkins said that the SEC's proposed regulation of crypto assets would provide entrepreneurs the certainty to raise capital in this country if adopted.

Feedback on the proposal kept coming back to one question, he said, "When does a covered investment contract cease to exist?" Atkin said that was one “critical reason” he was pushing Congress to move forward with the Clarity Act, adding that the bill addresses that challenge in the current law. If they adopt regulation of crypto assets, it's going to give entrepreneurs the certainty to raise capital in this country."