Bitcoin Tumbles 5% After US Senate Blocks Key Crypto Regulation Bill
Bitcoin led a broad sell-off across digital assets on Tuesday after the US Senate blocked a key cryptocurrency market structure bill, removing a potential regulatory catalyst for the sector.
The bill, Digital Asset Market Clarity Act, aimed to establish a broader regulatory framework for digital assets and give the Commodity Futures Trading Commission a central role in overseeing the sector. However, senators failed to secure the 60 votes required to advance the legislation, with a vote of 49-50.
Crypto-related equities also came under pressure, with Coinbase Global falling 10%, Circle Internet Group declining 11%, and Strategy dropping 5%.
The setback has added to pressure on digital assets after months of gains driven partly by expectations that clearer US rules would encourage greater institutional participation. Regulatory experts say the bill's failure represents a setback for an industry that had invested heavily in lobbying for clearer and more durable regulation.