Senate Rejects Clarity Act, Sending Bitcoin Prices Plummeting

The U.S. Senate's rejection of the Clarity Act has sent shockwaves through the cryptocurrency market, causing Bitcoin (BTC) to plummet nearly 4% in value.

The legislation, which aimed to establish a comprehensive regulatory structure for digital assets, fell short of the required 60 votes by a narrow margin of 49-50.

In response, spot Bitcoin exchange-traded funds experienced their largest single-day exodus since June, with $450.4 million in net withdrawals.

Fidelity's FBTC product was hit particularly hard, losing $214.8 million, followed closely by BlackRock's iShares Bitcoin Trust at $161.7 million.