US crypto bill stalls in Senate as Trump fumes

In a setback for the crypto sector, a bill that would have brought digital assets closer to the mainstream financial system has failed to win enough support in the US Senate. President Donald Trump, who stood to profit handsomely from his family’s extensive crypto business interests had the bill passed, reacted with anger.

Bitcoin also reacted immediately and is now trading at $76.400.

Clarity Act

In a procedural vote in the US Senate, the Clarity Act fell narrowly short. The bill secured 49 votes in favour and 50 against, while at least 60 senators would have needed to back it to move the measure forward.

The Clarity Act was intended to become the first comprehensive regulatory framework for digital assets in the United States and had been the subject of intensive negotiations for more than a year. The file, however, became mired in political and economic interests.

Democrats demanded stricter provisions to prevent President Donald Trump from profiting financially from his involvement in the crypto sector, while banks and crypto companies were diametrically opposed over whether platforms such as Coinbase should be allowed to offer interest-like rewards on digital tokens.

The banking sector in particular opposed such rewards on stablecoins. Banks argue that they risk driving savings out of local and regional institutions, which could undermine lending to households and businesses.

Senator Josh Hawley of Missouri ultimately voted against the proposal, pointing to concerns among his constituents. Farmers in particular fear that a shift of deposits into stablecoins could jeopardise their access to loans.