Bitcoin Tumbles as Crypto Regulation Bill Stalls Ahead of Fed Decision

The US cryptocurrency market took a hit on Wednesday after a key regulation bill stalled in the Senate. The Clarity Act, which aimed to establish a regulatory framework for digital assets, failed to advance with only 49 votes in favor and 50 against.

This setback has left investors without the congressional framework they had been watching for, adding to market concerns ahead of the Federal Reserve's interest-rate decision on Wednesday. The Senate's failure to pass the bill follows negotiations over provisions covering ethics, regulatory enforcement, and other safeguards.

With the regulatory catalyst fading, attention has shifted to the Federal Reserve, which is due to announce its policy decision on Wednesday. Markets had been pricing in a 90% probability of tighter monetary policy, including more than one rate hike this year.