Senate Blocks Clarity Act, Crypto Market Sees Sudden Downturn

The US Senate's rejection of the Digital Asset Market Clarity Act has sent shockwaves through the crypto market, with Bitcoin plummeting nearly 3% to around $76,000. The bill aimed to split regulatory oversight between the CFTC and SEC, but was met with opposition from Democrats due to concerns over conflict-of-interest language. Specifically, there were worries about President Trump's reported $1.4 billion in crypto profits in 2025.

The Senate voted 49-50 against advancing the bill on September 15, falling short of the 60 votes needed. The House had passed it with a 294-134 vote in July 2025, and the Senate Banking Committee cleared it 15-9 in May 2026. However, the final bill text incorporating 126 changes did not sway Democrats' opposition.

Ripple's XRP token was particularly hard hit, plummeting 10% as a result of the decision. The Ethereum ecosystem also felt the impact, with Ether dropping around 5%. The market's sensitivity to US regulatory developments has left many speculating about the bill's prospects in the future.