Bitcoin drops 3.8% to $75,748.2

The Clarity Act, a landmark bill to create a regulatory structure for cryptocurrencies and digital assets, failed to pass the U.S. Senate in a 49-50 vote

Bitcoin extended losses on Tuesday after a key legislation on cryptocurrencies and digital assets failed to pass a U.S. Senate vote. Sentiment had already been under pressure earlier due to a combination of surging U.S. Treasury yields and oil prices.

The crypto dropped 3.8% to $75,748.2 by 21:43 GMT.

The Clarity Act, a landmark bill to create a regulatory structure for cryptocurrencies and digital assets, failed to pass the U.S. Senate in a 49-50 vote. The legislation had cleared the U.S. Senate Banking Committee in May, but had stalled since amid an inability to wrangle the 60 votes needed for approval.

One senator out of 100 did not vote.

Senator Cynthia Lummis, who spearheaded efforts to wrangle Democratic support for the Clarity Act, on Monday had said that the latest text of the bill would meet Democratic demands as it contained President Donald Trump’s agreement to new ethics provisions.

This afternoon, Senate Democrats proved they were never truly serious about protecting consumers and preserving American leadership. I sat at the table with Senate Democrats working in good faith to get this done while they played games, Lummis said on social media on Tuesday after the Senate vote.

For over a year, they presented demands and the second we met them, they made new demands and moved the goal posts, she added.

The crypto industry had a more measured response to the setback. Top Bitcoin corporate holder Strategy posted a graphic on social media titled “Bitcoin’s U.S. Status Does Not Depend on CLARITY” and said Bitcoin has had legal and regulatory clarity in the U.S. for years.

Meanwhile, tZERO, a provider of blockchain infrastructure and regulated trading platforms for digital and traditional assets, said the Senate vote did not “change” the “trajectory” of the structural shift toward regulated digital asset markets that was already underway.

Other paths remain open, including proposed rulemaking and increasing coordination between the SEC and CFTC over digital assets. Institutions will continue to adopt blockchain-based market infrastructure because the secure, regulated rails they require are increasingly available today, tZERO added.