Crypto Market Slumps as Clarity Act Fails to Advance in Senate
The Digital Asset Market Clarity Act failed to advance in the US Senate on Tuesday after falling short of the required 60 votes. Despite negotiations between lawmakers from both parties, disagreements over provisions proved difficult to resolve. The bill's defeat is a setback for the crypto industry, which has spent hundreds of millions of dollars lobbying for regulatory clarity.
Bitcoin and Ethereum prices dropped following the news, with Bitcoin trading around $75,960 on Tuesday afternoon, down 3.8% over 24 hours. Ethereum declined by 3.9% to approximately $2,440. The crypto market is also under pressure ahead of the Federal Reserve's interest-rate decision on Wednesday.
The CME Group's FedWatch tool shows a 92% probability of a quarter-point rate increase, which would lift the Fed's target range from 3.50%-3.75% to 3.75%-4%. However, some analysts believe that a hike is unlikely, and Bitmine Immersion Technologies Chairman Tom Lee argued that markets could remain volatile as the Clarity Act vote and Federal Open Market Committee meeting overlap.