$480 million in crypto gets wiped out
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Crypto's growing influence in Washington ran into a powerful counterweight as banks mobilized against key provisions and Democrats hardened their demands over ethics rules.
SEC Chairman Paul Atkins announced Project Crypto to deliver digital asset regulatory clarity, moving forward independently after the CLARITY Act
The US Senate voted 49-50 against the CLARITY Act. Now the SEC and CFTC say they will issue crypto rules using their existing authority.
As the parties dig in their heels, the market structure bill hasn't yet amassed the votes it would need to clear the first Senate hurdle scheduled for Tuesday.
The bill would exempt qualifying crypto fees from gain-or-loss calculations and restrict tax-loss deductions on tokens sold and quickly repurchased.
Bitcoin, crypto stocks and digital assets slipped as Wall Street braced for two major Washington decisions.
A procedural motion to advance the Clarity Act failed on Tuesday.