Senate Blocks CLARITY Act, Cryptocurrency Market Takes a Hit as Fed Decision Looms

The US Senate's failure to advance the CLARITY Act has sent shockwaves through the cryptocurrency market, causing a sharp decline in major token prices. The bill, which aimed to provide a clearer regulatory framework for digital assets, was met with a procedural vote of 49-50, falling short of the required 60 votes.

Bitcoin fell by approximately 3% to $75,000 after the vote, recovering slightly to around $76,000 by Wednesday morning. The world's largest cryptocurrency had shown signs of strength earlier in the week, climbing to $79,500 during Monday's afternoon session, but the legislative setback erased those gains within hours.

XRP, Ethereum, and Solana were among the tokens that took a significant hit, dropping nearly 10%, 5%, and below the $100 mark respectively. Dogecoin lost about 5% and Stellar dropped roughly 10% to $0.175.