Bitcoin Slumps as US Senate Rejects Cryptocurrency Regulatory Bill
The price of Bitcoin fell by 4% on Tuesday after the US Senate rejected a major cryptocurrency and digital-assets bill, known as the Clarity Act. The legislation aimed to establish a regulatory framework for cryptocurrencies and digital assets but failed to pass with a vote of 49-50.
Senator Cynthia Lummis, a Republican from Wyoming who led efforts to secure Democratic backing, criticized Democratic senators for playing politics with the bill. She said that despite meeting their demands, they continued to make new ones and move the goalposts.
The rejection of the Clarity Act adds pressure on the cryptocurrency market, which is already facing financial-market pressures from rising U.S. Treasury yields and oil prices. The 10-year Treasury yield rose to its highest level since April 2007, while Brent crude futures surged by 2.7%.
The cryptocurrency industry took a measured view of the Senate setback, with some companies stating that the vote did not change the trajectory of regulated digital-asset markets. Institutions will continue to adopt blockchain-based market infrastructure as secure and regulated rails become increasingly available.