Bitcoin jumps 7% to $86,000 after US Senate blocks Clarity Act, ETF inflows surge

Bitcoin surged over 6% and climbed above $85,000 on Monday, despite the US Senate’s decision last week to halt progress on the Digital Asset Market Clarity Act. The rebound demonstrated a swift return of buyers to the market, even as federal crypto legislation remained stalled.

Senate Vote Blocks Clarity Act

On September 15, the Senate declined to advance the Clarity Act with a 49-50 vote, falling short of the 60 votes required for cloture. The proposed bill sought to establish clearer regulatory guidelines over digital assets and clarify jurisdiction between federal agencies overseeing the US crypto sector.

Following the failed vote, cryptocurrency prices initially dropped as investors responded to ongoing uncertainty over legislative oversight. However, Bitcoin staged a strong recovery, rising above previous support levels in a display of renewed confidence among buyers.

Legislative Disagreements Remain

The Clarity Act’s progress was hindered by persistent divisions among lawmakers. Democrats cited concerns regarding ethics provisions and potential conflicts involving the family interests of President Donald Trump in the crypto sector. Meanwhile, some Republicans also expressed internal disagreements, preventing the measure from advancing.