US Senate Rejects CLARITY Act as Crypto Markets Reel from Regulatory Uncertainty

The US Senate's failure to advance the CLARITY Act has sent shockwaves through the crypto market. The bill, which aimed to establish a framework for digital asset oversight, fell short of the 60 votes needed for cloture on September 15, 2026. This setback comes as lawmakers consider the American Reserve Modernization Act, which would create a Strategic Bitcoin Reserve and preserve government-held Bitcoin for 20 years.

The Federal Reserve's interest rate decision is also expected today, with traders anticipating a 25-basis-point increase. The outcome could impact cryptocurrency prices, particularly if Chair Kevin Warsh's comments influence the dollar or liquidity conditions.

Coinbase CEO Brian Armstrong expressed disappointment over the CLARITY Act's failure but noted that regulatory clarity can still be achieved through other means. Crypto markets responded to the news, with XRP price dropping significantly due to its sensitivity to regulatory developments.