Congressional gridlock on crypto market structure
The cryptocurrency Clarity Act, a central piece of pending federal crypto legislation, has encountered significant resistance from key Democratic lawmakers. Several Democrats stated the new draft bill "falls short" on ethics and other safeguards, even as lead Republican negotiator Senator Cynthia Lummis indicated the updated version was ready for release. Market observers noted odds for the bill's passage have tumbled to 38%, reflecting uncertainty over whether the divergent demands can be reconciled.
Separately, the KIDS Act has drawn sharp criticism from privacy advocates. The Electronic Frontier Foundation characterized the bill as "a mass surveillance system" rather than a narrowly tailored approach to consumer protection, raising concerns about surveillance and censorship regimes among privacy-focused lawmakers and civil society groups.