Bitcoin Holds $76K as CLARITY Act Fails and Fed Hikes Interest Rates
The CLARITY Act, which aimed to establish a federal regulatory framework for digital assets, failed in the Senate on September 15. The bill required 60 votes to pass but only managed 49, with four Republicans joining Democrats to vote against it.
The main reasons for the failure were not market-related but rather due to concerns over ethics language regarding presidential crypto holdings. Despite a revised version being released on Sunday, it was not enough to sway the votes.
The industry was caught off guard by the loss, with many expecting at least some senators to support the bill. However, with midterms approaching, the calendar is now limited for further action on the legislation.
In other news, the Federal Reserve raised interest rates by 25 basis points to a 3.75% to 4.00% target range in its first hike since 2023. Bitcoin's price initially surged towards $76,300 but later settled near $75,700 after Chair Warsh's press conference.
The bigger risk now lies in October, with Goldman forecasting another 25 basis point hike and the Fed projecting limited further tightening.