Although the U.S. Senate vote on the CLARITY Act crypto bill ended in failure, the cryptocurrency market responded with a rapid rise. Bitcoin moved above the USD 85,000 level, while stocks linked to digital assets strengthened. The advance was also supported by steps taken by U.S. regulatory authorities, which continued to create conditions for the use of new financial technologies despite the failure of the legislative proposal.

Regulators Responded Faster Than Congress

The September 15 vote in the U.S. Senate ended 50 to 49, meaning that the CLARITY Act failed to secure the number of votes required to advance to the next stage of the legislative process. The initial market reaction was an approximately 10% decline in the shares of crypto companies such as Coinbase and Circle. Investors were concerned that clear rules for digital assets would once again be postponed indefinitely.

Within two days, however, the situation was influenced by the regulatory authorities themselves. The Securities and Exchange Commission (SEC) introduced a temporary five-year conditional exemption regime that, subject to specified conditions, allows certain tokenized stocks to be traded on blockchain infrastructure. The Commodity Futures Trading Commission (CFTC) also eased requirements for trading software developers. These steps showed the market that regulation in the U.S. is progressing even without a newly approved law.

Bitcoin Rebounds and Crypto Stocks Rise

Following this combination of developments and other market factors, Bitcoin reached a seven-month high near USD 85,000. The rise in the leading cryptocurrency immediately supported shares of companies in the sector as well. Strategy gained 7.6% in Monday premarket trading, following a 16% increase on Friday, while Coinbase rose above USD 204.

For market participants, this highlights the importance of regulatory measures adopted within the existing powers of the relevant authorities. In this case, these were specific, time-limited and conditional measures adopted within the regulators’ existing powers.

Favorable Macro Environment and Persistent Risks

Bitcoin’s rise at the beginning of the week was also supported by the broader situation in financial markets. Oil prices fell by approximately 2%, while yields on 10-year U.S. Treasury bonds moved back below 5%. Lower yields reduce pressure on riskier investments, increasing investors’ willingness to buy cryptocurrencies.

The current rally, however, still faces significant challenges. The U.S. Federal Reserve (Fed) recently raised interest rates to 3.75–4.00%, while some market participants are also pricing in the possibility of another rate increase. Regulatory decisions also do not carry the same legal weight as formal legislation, and their future duration and form may depend on subsequent regulatory and legislative decisions. The long-term stability of the crypto market will therefore depend on whether it can sustain this growth even under tighter monetary policy.

Warning: The content of this article is intended solely for informational and analytical purposes and does not constitute investment advice, a financial recommendation or a proposal to buy or sell any digital assets or securities.