Bitcoin's price declined 4% over the past day to $75,939, with the cryptocurrency dropping as low as $75,038 on Tuesday, after the Senate blocked the Clarity Act in a procedural vote.
The digital asset market structure bill, which the crypto industry has long sought, failed to advance with senators voting 49 in favor and 50 against.
Beyond Bitcoin, the selloff extended to crypto-related equities. Coinbase (NASDAQ: COIN), America's largest crypto exchange, fell more than 10%, while MicroStrategy (MSTR), the largest corporate holder of Bitcoin, declined over 5%. Major publicly traded Bitcoin miners including Marathon Digital (MARA), CleanSpark, and Core Scientific also slipped 5% or more during the trading day.
What the Bill Would Have Done
The Clarity Act aimed to formally divide regulatory oversight of digital assets by distinguishing which assets qualify as securities, commodities, or stablecoins. The bill had received backing from major companies in the digital asset space seeking clear regulatory rules.
Political Disagreement
President Donald Trump urged lawmakers to pass the legislation last month, sparking a Bitcoin rally. However, Democratic lawmakers opposed the measure. Senator Elizabeth Warren warned Congress against voting for the bill, calling it "a massive risk to families." Senator Bernie Sanders wrote on X that the bill was "corrupt" and noted that "crypto billionaires have spent nearly $300M on the midterm elections" while "Trump and his family have pocketed more than $1.4B from crypto deals."
The White House has denied any wrongdoing regarding the president's family involvement in crypto ventures.
Pro-crypto Republican senator Cynthia Lummis criticized Democrats for blocking the legislation on X.
