Down 11 votes: the <清晰法案> failed to pass the Senate in a procedural vote, and the crypto sector collectively plunged. Coinbase closed down 10%, while Circle fell even harder. Bitcoin briefly slipped below $75,000 during the day, and in the past 24 hours, more than 100,000 people worldwide were liquidated.
The bill has been in the works for years. Its core is to clarify which tokens are treated as securities and which as commodities, and to also draw a line between the SEC and the CFTC over their respective responsibilities. Lobbying money was poured in heavily, but the end result was that all Democrats, along with a handful of Republicans, voted against it. The reasons also couldn’t avoid the issue of conflicts of interest tied to Trump’s own crypto business. The vote count seems somewhat unexpected—markets were pricing this in as the most meaningful regulatory progress this year.
The trouble is timing. Tonight the U.S. Federal Reserve will release its interest-rate decision. The market is betting on another rate hike. The yield on the 10-year U.S. Treasury just touched a nearly 20-year high, and oil prices are also still near a recent peak. Risk assets were already struggling to hold up, and the bill adds more pressure. Whether $75,000 can be defended will be decided tonight—watch the FOMC.
The bill has been in the works for years. Its core is to clarify which tokens are treated as securities and which as commodities, and to also draw a line between the SEC and the CFTC over their respective responsibilities. Lobbying money was poured in heavily, but the end result was that all Democrats, along with a handful of Republicans, voted against it. The reasons also couldn’t avoid the issue of conflicts of interest tied to Trump’s own crypto business. The vote count seems somewhat unexpected—markets were pricing this in as the most meaningful regulatory progress this year.
The trouble is timing. Tonight the U.S. Federal Reserve will release its interest-rate decision. The market is betting on another rate hike. The yield on the 10-year U.S. Treasury just touched a nearly 20-year high, and oil prices are also still near a recent peak. Risk assets were already struggling to hold up, and the bill adds more pressure. Whether $75,000 can be defended will be decided tonight—watch the FOMC.