Bitcoin Dodges Bullet as Crypto Market Tanks on Senate Vote

The cryptocurrency market saw significant losses on September 16 after the Senate failed to advance the CLARITY Act, a bill that would have divided U.S. crypto oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission.

XRP fell nearly 8%, while Ethereum and Solana declined by about 3% each. However, Bitcoin took only a 1.5% hit, its smallest decline of the major coins.

Rachael Lucas of BTC Markets attributed this to the fact that the CLARITY Act's passage would have left Bitcoin's status largely untouched, offering clearer exchange rules and custody standards without changing the asset itself.

The market was already under pressure from rising Treasury yields, Brent crude reaching $108.75, and Federal Reserve policy, which added 88% to 94% odds of a 25-basis-point hike at the September 16 meeting.