CLARITY Act stalls in Senate: Where next for crypto prices?

At the time of writing, Bitcoin (BTC) price was trading near $76,000, while ETH price had dropped towards just above $2,400. XRP price experienced a steeper decline, falling to around $1.29. The reaction suggests regulatory uncertainty may be weighing more heavily on altcoins than on Bitcoin.

This article is for informational purposes only and does not constitute financial advice. Past performance is not a guarantee of future results.

What happened to the CLARITY Act?

On 15 September, the Senate voted 49–50 against invoking cloture on a motion to consider the CLARITY Act. The proposal needed 60 votes to advance.

The bill would establish a federal framework for digital assets and clarify how responsibilities are divided between the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC).

The vote does not formally kill the legislation, but it leaves its path through Congress uncertain. Senate Banking Committee Chair Tim Scott said it was now up to the SEC and CFTC to “set clear rules of the road for digital assets until Congress legislates.” 

This means the SEC and CFTC can interpret and enforce existing laws around cryptocurrencies, as well as introduce rules within their current powers. However, only Congress can pass a new law that clearly divides responsibility for crypto regulation between the two agencies. 

Why did crypto prices fall?

The vote removed a potential regulatory boost for the wider crypto market.

SEC regulators already classify Bitcoin, Ether, XRP and several other major cryptocurrencies as digital commodities. However, the CLARITY Act would have created clearer rules for the wider industry. With the bill now stalled, crypto businesses must continue working under existing laws and guidance from regulators.

Bitcoin fell over 3% at the time of writing, while ETH fell over 4%, and XRP recorded almost 10% loss. The sell-off also came against an uncertain macroeconomic backdrop, with traders preparing for the US Federal Reserve’s next interest-rate decision.

Where could Bitcoin and crypto prices go next?

The CLARITY Act remains an important longer-term catalyst, but near-term crypto prices may depend more heavily on monetary policy, institutional flows and whether Bitcoin can defend the support levels.

TradingKey technical analyst Alan Long said the fall below $76,000 could open the way towards $71,000, followed by $70,000 if selling continues. 

On the upside, BTC Markets analyst Rachael Lucas said a return above the pre-vote opening price of $78,189 would be the first sign that traders are moving past the regulatory setback. 

Attention is now turning to the Federal Reserve. At the time of writing, traders on Crypto.com Predict placed the chance of a rate increase of up to 25 basis points at around 90%. Because a quarter-point hike is widely expected, the decision itself may have a limited effect on Bitcoin.

The Fed’s comments about future policy could matter more. Signals of further hikes could put additional pressure on BTC, while an unexpected decision to leave rates unchanged could support crypto prices.

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Past performance offers context but does not ensure future results. Investment outcomes are subject to market volatility, economic changes, and other unpredictable variables.