US Senate Fails to Advance Clarity Act, Prolonging Crypto Regulatory Uncertainty

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The US Senate failed to advance a procedural vote for floor consideration of the Clarity Act, raising the prospect of prolonged regulatory uncertainty for the cryptocurrency industry.

CoinDesk reported on September 17 that the Senate rejected a cloture vote on the Clarity Act on September 15, increasing the likelihood that the US crypto industry will have to continue operating without a clear regulatory framework for an extended period.

The report said the industry is concerned that capital, talent and technological innovation could shift to overseas markets with clearer regulatory regimes.

Rulemaking by the US Securities and Exchange Commission and the Commodity Futures Trading Commission may fill part of the gap, CoinDesk said. But it added that the boundaries of the two agencies' jurisdiction remain unclear. Legislation is still important to protect consumers and preserve the long-term competitiveness of the US industry, the report added.