CLARITY Act Down: Bitcoin ETFs Bleed $450M
Bitcoin spot ETFs recorded their largest single-day outflow since June — $450 million gone — after the U.
CLARITY Act Down: Bitcoin ETFs Bleed $450M
Bitcoin spot ETFs recorded their largest single-day outflow since June — $450 million gone — after the U.S. Senate failed to advance the CLARITY Act, the legislation that would have drawn a clean regulatory line between digital assets treated as securities and those treated as commodities, per CoinDesk.
The vote's collapse did what the Federal Reserve hadn't managed to do on its own: it broke crypto's correlation with traditional markets. Bitcoin, which had been trading in loose step with the Dollar Index and U.S. equities heading into Fed day, decoupled sharply — not upward, but down, toward $80,000, as regulatory-sensitive tokens took the harder hit.
The mechanics matter here. Institutional money had been parked in stablecoin positions, waiting for the Fed decision to clear before rotating back. The CLARITY Act failure changed the calculus. That capital isn't returning to spot markets until the regulatory picture firms up — and with the Senate now heading toward midterm season, a fresh legislative attempt looks months away at minimum, according to Bloomberg's Steven Major, who separately warned that a Fed rate hike compounds the risk by steepening the yield curve in ways that push institutional allocators further toward fixed income and away from risk assets.
The position is now this: crypto sits in a policy vacuum, squeezed between a Fed that may have just hiked and a Congress that couldn't agree on the rules of the game.
If you hold digital assets through any EU-regulated platform, pull your custody agreement and check whether your provider's MiCA authorisation covers the asset class you're actually holding — not the one you think you're holding.
