CLARITY Act: Can it still pass and accelerate the Bitcoin bull run?

Seven Democrats refuse to bury the CLARITY Act

Can the CLARITY Act ultimately pass the Senate? The day after the setback suffered by the bill, seven Democratic senators released a joint statement on Wednesday affirming their desire to continue negotiations.

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Kirsten Gillibrand, Mark Warner, Ruben Gallego, Angela Alsobrooks, Cory Booker, Catherine Cortez Masto, and Raphael Warnock stated they remain "committed to working in a bipartisan manner" to try and move the legislation forward.

They acknowledged, however, that the vote was a failure: "This week was a setback, but not the end of this important work." Several of these lawmakers were already participating in discussions with Republicans, which keeps the possibility of a new compromise alive.

Why the bill could still return to the Senate

On Tuesday, the motion to advance the CLARITY Act received only 49 votes out of 50, while 60 were needed. But this was not a final vote on the substance of the bill. The Senate failed to gather the necessary votes to close the debate and move the procedure forward.

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Furthermore, Republican Thom Tillis filed a "motion to reconsider," allowing for a re-examination of the vote. The CLARITY Act could therefore still return to the Senate if its sponsors manage to gather more support.

The task remains difficult, however: it is 11 votes short of reaching the 60-vote threshold, while the legislative calendar is tightening ahead of the midterm elections. Several analysts now deem its short-term passage unlikely.

Trump and stablecoins remain at the heart of the deadlock

Two issues continue to crystallize tensions. The first concerns Donald Trump’s financial interests in the crypto sector. Several Democrats want to strengthen conflict-of-interest provisions before accepting legislation that could benefit the sector.

The second pits traditional banks against crypto players over interest-bearing stablecoins. Banking institutions fear that widespread adoption of these products could lead to a deposit flight toward crypto platforms, with potential consequences for regional banks.

Until a compromise is found on these two issues, the necessary bipartisan support will be difficult to achieve.

What is the impact for Bitcoin and the crypto market?

The failure of the vote weighed on the market, but without causing a major sell-off. Bitcoin briefly retreated below $76,000, while several crypto-related stocks suffered more. In a context already pressured by rising bond yields and expectations regarding the Fed, the response of BTC also highlights a certain market resilience.

A surprise passage of the CLARITY Act would act as a positive catalyst. By clarifying the jurisdictions of the SEC and the CFTC, the text would reduce some regulatory uncertainty and could encourage new institutional investment.

The impact, however, would not be automatic. Bitcoin's trajectory also remains tied to ETF inflows, Fed monetary policy, global liquidity, and risk appetite.

The CLARITY Act would not determine the next market move on its own. But in an already bullish context, its adoption could bolster confidence and serve as an accelerator for the bull run, whereas an abandonment would prolong regulatory uncertainty in the U.S.

Sources: Coindesk, Eleanor Terrett on X