The CLARITY Act, which would have split digital-asset oversight between the SEC and the CFTC, failed to advance in the Senate after a cloture motion came up short. Senator Cynthia Lummis blamed the defeat on partisan opposition to President Trump rather than the bill's substance, and prediction markets now put the odds of the act becoming law by 2027 at 5.8%.
The CLARITY Act failed to advance in the Senate after its cloture motion was defeated 49-50, with all Democrats and four Republicans voting against it. Senator Cynthia Lummis attributed the loss to partisan politics, arguing that opposition to President Donald Trump mattered more to Democrats than the bill's actual contents.
A bill meant to end fragmented oversight
The CLARITY Act aimed to establish a clear regulatory framework for digital assets by dividing oversight between the SEC and the CFTC. Its failure to advance leaves U.S. crypto market regulation in its current fragmented state.
Prediction markets cut the odds of passage
Since the vote, market pricing has moved against the bill's prospects. The odds of the act being signed into law by January 1, 2027, dropped to 5.8%, down from 6% a day earlier and 7% a week earlier. That slide suggests traders see the act's legislative path facing significant hurdles, particularly in overcoming the partisan divide that sank the vote.
What could still move the needle
Observers are watching for further statements from Trump and Senate leaders that could shift the bill's trajectory. Any movement toward bipartisan support, a new compromise, or fresh legislative proposals could change market perceptions and the pricing of the act's chances.
Source: Crypto Briefing
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