U.S. Clarity Act Legislative Efforts Fail, Crypto Regulation Hits Deadlock

TechFlow reports that on September 27, according to CoinDesk, the U.S. Clarity Act, aimed at establishing a clear regulatory framework for cryptocurrencies, failed after months of tense negotiations. The bill was originally intended to resolve the definition of digital assets at the federal level but failed to advance to a final vote due to intense competition among various interests.

Multiple sources indicate that the core reason for the legislative collapse lies in complex jurisdictional conflicts and disputes over bill provisions. The CFTC (Commodity Futures Trading Commission) and SEC (Securities and Exchange Commission) continued to clash over regulatory authority for certain digital assets, while legislators also failed to reach a consensus on the legal classification of NFTs, DeFi protocols, and stablecoins. Although some organizations called for legislation to eliminate market uncertainty, a crucial compromise package ultimately failed to materialize.

The Fintech Association and other industry groups had previously lobbied actively in support of the bill, hoping to establish clear industry standards. With the demise of this legislation, traditional Wall Street financial institutions and crypto projects will continue to operate in legal gray areas, forcing the industry's compliance progress to be delayed further.