Bitcoin and crypto stocks rose ahead of an important Senate vote. What will it change?
The price of Bitcoin has approached $80,000, and shares of key companies in the crypto sector have risen in anticipation of an important vote in the U.S. Senate. The Senate will decide whether to consider the Clarity Act—a bill intended to establish a unified regulatory framework for digital assets. The likelihood of its passage this year remains low; however, following the latest amendments, investors have become more optimistic about the bill’s prospects.
Details
Bitcoin, which accounts for about 60% of the total cryptocurrency market capitalization, approached the $80,000 mark. It rose more than 2% on September 14, reaching $79,530, according to CoinGecko. Shares of cryptocurrency companies rose even more sharply: Coinbase shares closed 9.2% higher on September 14, while Circle shares rose 7.5%.
On Tuesday, September 15, the U.S. Senate will hold a preliminary vote on the Clarity Act—a bill intended to establish new regulations for cryptocurrencies and other digital assets. The bill has been under consideration by the Senate for several months after passing through its Banking Committee in May, CNBC notes. At least 60 votes are needed to advance the bill. With a full Senate, this means that at least seven Democrats must join the 53 Republicans.
What's in the bill
The latest version of the bill was agreed upon by Republicans in the Senate on Sunday following lengthy negotiations with Democrats. Changes were made to several of the most contentious issues, including ethical standards for government officials and the regulation of stablecoins, according to CNBC.
One of the new provisions gives the U.S. Secretary of the Treasury the authority to intervene if the outflow of deposits from banks reaches a level that is “harmful” to them, Bloomberg noted. Banks fear that interest-like payments on stablecoins could lead to a flight of deposits from traditional banks to high-yield cryptocurrency accounts, CNBC explained.
The bill also imposes new restrictions on the president and other elected officials who own cryptocurrencies. For example, the president will be required to sell their digital assets or transfer a significant portion of them to a blind trust. Failure to do so could result in financial penalties. State attorneys general, among others, will be able to monitor compliance with these requirements, Bloomberg notes.
The administration of U.S. President Donald Trump has agreed to amendments to the original text of the bill. “The president has made it clear: Congress must pass the Clarity Act so that we can stay ahead of foreign competitors and maintain our global leadership in innovation,” CNBC quotes the White House press office as saying.
However, even if the bill is approved in a preliminary vote, this will not mean that the Clarity Act has been definitively adopted. It will merely allow the Senate to continue reviewing the bill, after which lawmakers will be able to introduce new amendments and hold a subsequent vote, Senator Bernie Moreno noted on social media platform X.
The Clarity Act’s prospects have improved dramatically after Republicans introduced the latest amendments, according to Bloomberg. According to Polymarket, the probability of the bill passing this year has risen from about 14% to nearly 30%. Although the odds remain relatively low, this represents a significant revision to market expectations, Bloomberg notes.
What Banks and Crypto Market Participants Are Saying
CNBC notes that the updated version of the bill does not resolve the concerns raised by banks.
“We welcome the growing number of lawmakers who share our concerns about the loophole in the bill related to the payment of returns, and recognize that targeted changes to the Clarity Act could strengthen the bill and improve its chances of passing the full Senate,” ABA Senior Vice President for Innovation and Strategy Brooke Ibarra told CNBC. She hopes that, ultimately, the Senate will pass a version of the bill that promotes innovation without undermining the economy.
The cryptocurrency industry, on the other hand, supports the bill. Coinbase CEO Brian Armstrong told CNBC that the bill is ready for Senate approval. According to him, regulation of the U.S. cryptocurrency market will be implemented regardless of the outcome of the vote. If the Clarity Act is not passed, regulators are prepared to develop new rules on their own, which will provide the market with certainty in any case.
Coinbase is also trying to alleviate the concerns of community banks. The company has entered into an agreement with the financial platform Moov, which will allow more than 1,000 community banks and credit unions to access the infrastructure needed to work with stablecoins, according to CNBC.
This article was AI-translated and verified by a human editor
