Bitcoin Passes CLARITY Act Test, But BOJ Rate Decision Looms

The Bitcoin price has passed a significant test by holding up through the failed U.S. CLARITY Act vote, but another challenge is looming on the horizon.

The market was put to the test as the bill, which aimed to clarify the regulatory framework for digital assets, failed to clear a procedural vote in the Senate with 49-50 votes against it. The vote led to an immediate market reaction, with reports indicating roughly $300 million in leveraged long positions getting liquidated, and short-term holders sending more than 23,000 BTC to exchanges at a loss.

The failed bill did not create a new legal threat to Bitcoin itself, as the asset already has an established commodity classification in the U.S. However, traders lost a regulatory catalyst they had been waiting for, leaving the SEC and CFTC with more influence over the near-term regulatory environment.

Now, the Bank of Japan's rate decision on September 18 is set to bring another test for Bitcoin, as markets expect the BOJ to hike its policy rate to 1.25%. This move could shake up the yen, global liquidity, and demand for risk assets.