Senate Rejects CLARITY Act as Bitcoin Rally Defies Setback

The U.S. Senate's rejection of the CLARITY Act on September 15, 2026, marked a significant setback for cryptocurrency legislation, but the market has shown resilience, with Bitcoin rallying despite the political hurdle. The Senate voted 49-50 against cloture, falling short of the 60 votes needed to advance the bill, which aimed to establish a clearer regulatory framework for digital assets. Bitcoin had already climbed from a low of approximately $57,950 on July 1 to above $80,000 by September 4, even as Polymarket odds for the act's passage declined from 39 to 18 during the same period. This divergence led Bitwise Chief Investment Officer Matt Hougan to revise his outlook, now describing the legislative failure as a temporary speed bump rather than a roadblock to the crypto bull market. In the immediate aftermath of the vote, Bitcoin fell about 4%, with crypto derivatives markets recording roughly $571 million in long liquidations over 24 hours. XRP experienced a sharper decline, highlighting the policy risk for altcoins. However, Bitcoin stabilized and was trading near $76,300 by September 17, still well above its July starting point.