The U.S. Clarity Act, a market-structure bill designed to clarify cryptocurrency regulation, failed a Senate procedural vote on Sept. 15 after receiving 50 votes in favor and 49 against, short of the 60 required to advance to floor debate. Four Republicans joined Democrats in opposing the measure. The bill would establish clearer legal classifications for digital assets and divide oversight between the SEC (U.S. securities regulator) and the CFTC (U.S. derivatives regulator). Negotiations broke down over conflict-of-interest provisions tied to more than $1.4 billion in cryptocurrency income earned by President Donald Trump's family. Trump disclosed in financial filings that he earned more than $1.4 billion from crypto ventures last year, while income linked to World Liberty Financial, in which the family holds a controlling stake, exceeded $500 million. The final compromise would have required public officials with a substantial financial interest in a crypto business to divest or use a blind trust, with transfers reported to an ethics agency and disclosed publicly. Democrats said the threshold was too vague and questioned whether the U.S. Justice Department could police a sitting president's conflicts, particularly because Todd Blanche, who leads the department, previously served as Trump's defense attorney. Opposition from regional banks to rewards on stablecoin holdings also remained unresolved. The defeat dimmed prospects for passage this year as Congress faces a tight schedule before the November midterm elections. Crypto markets fell sharply, with total market value reaching $2.66 trillion by 8:50 a.m. that day, down 4% in 24 hours, while Bitcoin dropped nearly 4% to around $75,000 after falling about 5% at one point. Kim Min-seung, head of the research center at Digital X, said the setback was negative because the bill would provide legal clarity for altcoins and real-world assets, potentially affecting institutional inflows. Kim added that Bitcoin is more strongly influenced by macroeconomic factors such as interest rates, leaving the outlook dependent on broader economic conditions.