Bitcoin Survives CLARITY Act Setback: Regulatory Patchwork Remains
The cryptocurrency industry experienced a tumultuous week, but Bitcoin managed to bounce back from the setback caused by the failure of the CLARITY Act in the US Senate.
The bill, which aimed to establish clearer boundaries between the SEC and CFTC and create federal rules for crypto markets and intermediaries, was voted down on September 15, causing Bitcoin's price to drop to a multi-week low of $75,000.
However, since then, the price has recovered all losses and even surpassed $81,000 on Friday. Experts point out that the failure of the CLARITY Act does not necessarily mean new restrictions for the industry, but rather leaves regulatory work in the hands of regulators instead of Congress.
Alvin Kan, COO at Bitget Wallet, noted that 'the current US regulatory patchwork has been preserved' and emphasized that there are no new restrictions on self-custody or self-hosted wallets. However, some protections included in the proposed legislation remain without a stronger statutory foundation.
The CLARITY Act is not technically dead, as a procedural vote by Senator Thom Tillis preserves the possibility of reconsideration, although passage this year seems increasingly difficult. Meanwhile, regulatory bodies will continue to use their existing authority, with the SEC introducing a five-week exemption for certain tokenized-stock trading.