Coinbase CEO Brian Armstrong says the CLARITY vote failure is a "disappointment" but vowed to update the financial system.

Democrats said the legislation didn’t do enough to crack down on President Donald Trump’s potential conflicts of interest.

Senators from both parties blocked a landmark digital asset market structure bill in a procedural vote, sending crypto stocks tumbling. The bill would have handed the CFTC the primary authority to regulate the digital assets industry,

The bill would exempt qualifying crypto fees from gain-or-loss calculations and restrict tax-loss deductions on tokens sold and quickly repurchased.

Nearly 100,000 crypto traders were liquidated for $480 million after the CLARITY Act failed to clear the Senate's procedural hurdle.