Senate Blocks Crypto Bill, Bitcoin Plummets 34%

The US Senate's decision to block the CLARITY Act has sent shockwaves through the crypto market, causing Bitcoin to plummet nearly 34% in 24 hours to below $76,000. The bill aimed to clarify regulatory oversight of digital assets by dividing supervision between the Commodity Futures Trading Commission and the Securities and Exchange Commission.

The 49-50 vote fell short of the required 60 votes, dealing a major setback to efforts to pass market structure legislation this year. The defeat is striking given that President Donald Trump agreed to ethics restrictions, including divestment requirements for federal officials and their spouses in crypto issuers or placing them in a blind trust.

Senator Cynthia Lummis said 'I think we're done. It's over' after the vote, while Democratic Senator Elizabeth Warren called the bill 'anti-consumer and pro-illicit finance'. The failed vote means clearer rules for the crypto industry will have to wait until next year.