Noida, Sep 16 (APAC Media): Bitcoin (BTC) extended its decline on Tuesday after the U.S. Senate rejected a major cryptocurrency and digital-assets bill, adding to pressure already weighing on the market from surging U.S. Treasury yields and rising oil prices.
The cryptocurrency fell 3.9% to $75,747.10 by 17:43 11:10 AM IST
The Senate voted 49-50 against the Clarity Act, a landmark proposal aimed at establishing a regulatory framework for cryptocurrencies and digital assets. The legislation had cleared the Senate Banking Committee in May but had remained stalled as lawmakers struggled to secure the 60 votes required for passage.
One of the 100 senators did not vote. All Republicans backed the measure except Senators Susan Collins of Maine, Josh Hawley of Missouri, Jerry Moran of Kansas and Thom Tillis of North Carolina.
Senator Cynthia Lummis, a Republican from Wyoming who had led efforts to secure Democratic backing, said on Monday that the latest version of the bill addressed Democratic concerns, including new ethics provisions agreed to by President Donald Trump.
Following the vote, Lummis criticised Democratic senators, saying, “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 the legislation done while they played games.”
“For over a year, they presented demands, and the second we met them, they made new demands and moved the goalposts,” she added.
Disagreements over the legislation included provisions governing yield payments on stablecoins and the proposed division of regulatory responsibilities between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
The cryptocurrency industry took a more measured view of the Senate setback.
Strategy, the largest corporate holder of Bitcoin, posted a graphic on social media titled “Bitcoin’s U.S. Status Does Not Depend on CLARITY” and said, “BTC has had legal and regulatory clarity in the U.S. for years.”
Blockchain infrastructure and trading platform provider tZERO also said the vote had not altered the broader development of regulated digital-asset markets.
“The vote did not ‘change’ the ‘trajectory’ of the ‘structural shift toward regulated digital asset markets’ that was already underway,” the company said.
“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.
Broader financial-market pressures also continued to weigh on risk assets. Expectations for higher interest rates have risen amid a sharp sell-off in U.S. government bonds, elevated inflation concerns linked to oil prices, recent labour-market and inflation data, and increasingly hawkish comments from Federal Reserve officials.
The U.S. 10-year Treasury yield rose 4.5 basis points to close at 5.006% on Tuesday, its highest level since April 2007. The 30-year yield also reached a more than 24-year high.
The bond sell-off has been compounded by concerns about the enormous investment required to build artificial-intelligence infrastructure and growing U.S. fiscal debt.
Oil prices added further inflationary pressure. Brent crude futures, the global benchmark, rose 2.7% to settle at $108.51 a barrel, while U.S. West Texas Intermediate crude gained 4.1% to $105.52.
The latest oil rally followed reports that loadings at a key Saudi Arabian Red Sea port had been suspended and that Libya had halted operations at three oilfields.
Markets now await the Federal Reserve’s next policy decision, with investors assessing whether the central bank will deliver its first-rate hike in more than three years. The outlook is unfolding against political pressure from President Donald Trump for Fed Chair Kevin Warsh to cut rates and ahead of the U.S. midterm elections in November.
–ENDS–
Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
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