Senate Rejects Crypto Clarity Bill, Bitcoin Plunges Below $76K

Bitcoin's price continued to slide on Tuesday, falling below $76K as investors pulled $450.4 million out of US spot Bitcoin exchange-traded funds (ETFs). This comes after a failed Senate vote on the Digital Asset Market CLARITY Act, which would have established a federal framework for digital-asset markets.

The largest redemptions came from Fidelity's Wise Origin Bitcoin Fund and Blackrock's iShares Bitcoin Trust, with $214.8 million and $161.7 million withdrawn respectively. Grayscale's Bitcoin Trust ETF saw $44.1 million in redemptions, while ARK 21Shares and Bitwise's Bitcoin ETFs lost $17.4 million and $12.4 million.

The CLARITY Act's failure to advance, despite months of negotiation and amendment, has left the crypto market reeling. The bill aimed to provide clarity on how US financial regulators determine whether and how to regulate digital assets, including the roles of the Securities and Exchange Commission and Commodity Futures Trading Commission.