The U.S. Senate blocked the Digital Asset Market Clarity Act last week, with every Democratic senator voting against it. The bill's failure leaves digital-asset oversight with existing regulators, and prediction markets now put the odds of the bill becoming law by January 1, 2027 at just 5.1%.
The U.S. Senate blocked the Digital Asset Market Clarity Act last week, falling short of the 60 votes needed to advance. All Democratic senators, along with a few Republicans, voted against the measure, blocking it from progressing.
It would have defined when digital assets count as commodities or securities, assigning oversight mainly to the CFTC and the SEC. Its defeat leaves the current regulatory setup unchanged, with those agencies keeping their existing authority.
Scott blames Democrats' political calculus
Sen. Tim Scott (R-S.C.), who chairs the Senate Banking Committee, wrote in a CoinDesk opinion piece that not a single Senate Democrat voted to advance the bill. He said Republicans had incorporated over 120 changes Democrats requested during more than a year of negotiations.
Scott also said at least 12 Senate Democrats had claimed they wanted a deal before the vote, yet none of them ultimately backed the bill. Following the defeat, he said he called on the SEC and CFTC to set clear rules for digital assets while Congress continues its work.
Markets price in a delay
Prediction markets now show just 5.1% odds that the Clarity Act becomes law by January 1, 2027, reflecting reduced expectations for regulatory clarity this year. Observers are watching Senate Banking Committee Chairman Tim Scott and Subcommittee on Digital Assets Chair Cynthia Lummis for any sign of a renewed push.
For now, digital-asset firms remain under the SEC and CFTC's existing authority.
Sources: CoinDesk, Crypto Briefing
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