Bitcoin Drops Below $77,000 as CLARITY Act Odds Collapse

The CLARITY Act is a closely watched U.S. legislative effort to define the market structure and regulatory treatment of digital assets. Its progress in the Senate matters to crypto investors because clearer rules could shape how tokens, trading platforms and other market participants operate in the United States. Still, policy developments are only one part of the outlook, alongside spot Bitcoin ETF flows and movements in the U.S. dollar.

The U.S. Senate failed to pass the CLARITY Act before its recess, pushing consideration to September. Bitcoin nevertheless climbed above $65,000 and traded past $65,200, helping lift the broader cryptocurrency market. Analysts said investors had largely priced in the legislative delay, limiting its impact on risk appetite. Continued inflows into spot Bitcoin ETFs and a weaker dollar provided stronger near-term support for the rally.

The Digital Asset Market Clarity Act, or CLARITY Act, aims to divide regulatory responsibilities between the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission, establishing a federal framework for token issuance and trading. The House passed the bill by 294–134 on July 17, 2025, leaving its progress in the Senate pivotal to breaking the long-running regulatory deadlock.

On May 14, 2026, the U.S. Senate Banking Committee approved the CLARITY Act by 15–9. The measure must still be reconciled with the Senate Agriculture Committee’s version before going to the full Senate for a vote. The news briefly pushed Bitcoin above $82,000 before it retreated to around $81,500. Nvidia gained more than 4% the same day, helping the S&P 500 close above 7,500 for the first time.