Bitcoin and XRP Await the Fed After CLARITY Act's Failure: Another Blow Coming?

Crypto markets are bracing for the Federal Reserve's (Fed) rate decision on September 16, just a day after the CLARITY Act failed to advance in the Senate.

XRP dropped nearly 10% toward $1.30, Bitcoin slipped below $76,000, and more than $300 million in leveraged positions got liquidated within minutes.

Why the CLARITY Act Vote Failed

The U.S. Senate failed to advance the CLARITY Act on September 15, falling short in a 49-50 procedural vote that required 60 votes to pass.

Tuesday's vote was never a final passage vote. Failure stalls formal consideration for now, but it does not permanently kill the CLARITY Act, which sought clearer jurisdictional lines between the SEC and CFTC for digital assets.

Republican Senator Thom Tillis said he will keep working to advance the legislation despite the setback. Meanwhile, Polymarket odds for passage in 2026 fell from roughly 30% to just 5% within a single day.

Not everyone agrees with this setback. Senior analyst Eric Balchunas offered a starkly different assessment, saying Tuesday's failure to reach cloture means the legislation is all but dead.

Why Does Wednesday's Fed Decision Matter More Now?

With legislative momentum stalled, attention has shifted entirely to the Federal Reserve's rate decision today, along with updated projections and remarks from Chair Kevin Warsh.