Key facts
- The Clarity Act failed to advance in the US Senate on Tuesday, falling 11 votes short of the 60-vote threshold.
- Bitcoin fell 4% to $75,960 following the vote.
- Ethereum dropped 5.4% to $2,401.
- Solana declined 5.1% to $98.15.
- XRP lost 9.4%.
The US Senate rejected a procedural vote on the Clarity Act on Tuesday, with the bill falling 11 votes short of the 60 needed to advance. The failure of the vote, which was intended to bring the bill to the floor for consideration, led to a sharp decline in major cryptocurrencies. Bitcoin fell 4% to $75,960, its lowest level since August 21, while Ethereum dropped 5.4% to $2,401, Solana declined 5.1% to $98.15, and XRP lost 9.4%.
Negotiations reportedly collapsed in the final hour over ethics provisions. While Republicans had made concessions, Democrats stated the bill still did not address their concerns. The bill's chief author, Senator Cynthia Lummis, had acknowledged the vote's likely failure earlier in the day.
Despite the legislative setback, industry participants noted that regulatory clarity for crypto may still emerge through existing authorities. The CFTC has directed staff to write rules under current law, and the SEC has proposed allowing blockchains to serve as official stock ownership records. Coinbase has also filed to bring single-stock perpetuals onshore. These actions have occurred without a new statute.
Market participants are now looking ahead to the Federal Open Market Committee (FOMC) meeting, which could influence market sentiment. The Bitcoin ETFs saw $450 million in net outflows on Tuesday, and Ethereum ETFs experienced $142 million in outflows.