Senate Blocks Clarity Act, Sending Bitcoin Price Plummeting
The Bitcoin price plummeted by 4% over the past day to $75,939, mirroring the decline of cryptocurrency-related stocks after the Senate blocked the Clarity Act.
The landmark digital asset market structure bill was held back in a procedural vote on Tuesday, despite President Donald Trump's call for its passage last month. The bill aimed to formally divide oversight between regulators and distinguish which digital assets are securities, commodities or stablecoins.
Major companies in the digital asset space have long called for clear rules to be put in place to regulate the industry, but senators mostly voted against advancing the legislation, 49 for and 50 against. The bill's blockage sparked a decline in Bitcoin-related stocks, with Coinbase dropping by over 10% and Strategy plummeting by more than 5%.
Crypto billionaires have spent nearly $300M on the midterm elections, added Senator Bernie Sanders, while Trump and his family have pocketed more than $1.4B from crypto deals. Pro-crypto senator Cynthia Lummis slammed Democrats for blocking the bill, accusing them of being anti-consumer and pro-illicit finance.