The U.S. Clarity Act legislative efforts have collapsed, and cryptocurrency regulation is at a standstill

According to CoinDesk, the Clarity Act, aimed at establishing a clear regulatory framework for cryptocurrency in the United States, has been declared a failure after months of intense negotiations. The bill was originally intended to address the definition of digital assets at the federal level, but it failed to reach the final voting process due to fierce interest group conflicts.

Multiple sources indicate that the core reason for the legislative collapse lies in complex jurisdictional conflicts and disputes over terms. The CFTC (Commodity Futures Trading Commission) and SEC (Securities and Exchange Commission) are in disagreement over the management rights of certain digital assets, while lawmakers also struggle to reach a consensus on how to define the legal attributes of NFTs, DeFi protocols, and stablecoins. Despite calls from organizations to eliminate market uncertainty through legislation, a key compromise proposal ultimately could not be reached.

The Fintech Association and other industry organizations had previously lobbied actively in support of the bill, hoping to establish clear industry standards. With the failure of this legislation, traditional financial institutions on Wall Street and cryptocurrency projects will continue to face legal gray areas, and the industry's compliance process will thus be forced to delay.