U.S. Senate Rejects Clarity Act, Bitcoin Plummets

The U.S. Senate has rejected the Clarity Act, according to a report by South Korea’s Chosun Ilbo. The report said Bitcoin fell following the Senate’s decision, linking the cryptocurrency market’s decline to the legislative setback.

The Clarity Act is associated with efforts to create clearer rules for digital assets and the companies that issue, trade, or custody them. U.S. crypto policy has remained a major focus for the industry because federal rules can affect how tokens are classified and which agencies oversee different parts of the market.

Bitcoin, the largest cryptocurrency by market prominence, is often sensitive to major regulatory developments in the United States. Market participants generally watch legislation closely for signs that rules governing crypto businesses may become more defined or more restrictive.

The reported Senate rejection represents a setback for the measure and underscores the continuing uncertainty around U.S. digital-asset regulation. Further legislative action would be needed before any proposed framework could take effect.