Crypto Markets Reel from Failed Clarity Act Vote Amid Oil Price Surge
The Digital Asset Market Clarity Act failed to pass in the US Senate on Tuesday, dealing a setback to the crypto industry. The bill needed 60 votes to advance but fell short, with lawmakers unable to agree on provisions including restrictions on senior government officials maintaining ties to crypto businesses.
Negotiators from both parties had worked on over 600 pages of compromise legislation, but Republican Senator Cynthia Lummis's final appeal was not enough to secure sufficient support. The defeat could send the legislation back to the drawing board unless lawmakers find a way to revive the process before the congressional session ends.
Crypto markets were already under pressure due to rising oil prices and inflation concerns ahead of the Federal Reserve's interest-rate decision. Bitcoin fell 4.9% from Monday's high, trading around $75,960 on Tuesday afternoon, down 3.8% over 24 hours. Ethereum declined 3.9% to approximately $2,440.
Gold also declined as the stronger dollar and higher Treasury yields reduced demand for the non-yielding asset. Oil prices climbed after Saudi Arabia reportedly cancelled some shipments following the closure of a key export pipeline after drone attacks. West Texas Intermediate gained 4.2% to $105.61 a barrel, while Brent crude futures rose 2.4% to $108.30.