Bitcoin ETFs shed $450 million as Clarity Act fails
Bitcoin ETFs saw $450 million in outflows following the failure of the Clarity Act in the U.S. Senate, which effectively stalls crypto market structure legislation for the year. The broader crypto market experienced a downturn as investors shifted focus toward the upcoming Federal Reserve interest-rate decision.
Why it matters
The legislative failure signals a period of regulatory uncertainty for the U.S. crypto industry, impacting investor sentiment and market liquidity.
Bitcoin BTC $75,881.02 is little changed since midnight UTC, after dropping following the vote, which garnered around 10 fewer votes than the 60 required. Among those opposing the motion were seven Democrats who had spent months negotiating the text.
The CoinDesk 20 Index also held its loss, dropping less than 0.1% since midnight after falling 4.6% on Tuesday in the steepest decline since June 5.
Attention now switches to the Federal Reserve, which announces its interest-rate decision later today, with an increase having been the market's base case going into the meeting.
The bill’s failure effectively ends any prospect of market structure legislation clearing the Senate this year, with Congress expected to be under split control in January.
Bitcoin’s 24-hour drop of 1.7% seems muted compared with slides in the tokens most exposed to U.S. regulatory treatment.
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