Cryptocurrency bill collapses in US Senate

According to Dawn, efforts to pass a major US digital-currency law ran aground on Tuesday in the Senate after lawmakers from both parties could not reconcile their differences on ethics, banking and the oversight of the fast-expanding industry. The Digital Asset Market Clarity Act fell short of the 60 votes required for Senate debate, with rules covering the wide-ranging crypto assets of President Donald Trump among the main sticking points. The measure would have divided oversight mainly between the Securities and Exchange Commission and the Commodity Futures Trading Commission, replacing a patchwork of rules that has shifted with each administration.

Senator Elizabeth Warren, who leads Democrats on the Senate banking panel, warned that the bill carried serious risks for households, national security and the economy. She also accused the measure of giving the president a way to earn enormous sums from crypto while many Americans struggle with rising living costs. Cynthia Lummis, a Republican from Wyoming and one of the bill's chief authors, said the final text reflected more than 120 changes Democrats had requested.

Community banks objected sharply to stablecoin reward provisions, warning that depositors might move money away from traditional banks and cut credit for farmers and small enterprises. Bitcoin, the top digital currency by market capitalisation, lost roughly five per cent on Tuesday and was priced at $75,039.