Bitcoin Status Unchanged Despite CLARITY Act Setback in Senate

Analysis suggests the Senate’s setback on the CLARITY Act is unlikely to materially change Bitcoin’s narrative in the near term. Still, the delay in establishing a legal framework for spot-market oversight could prolong regulatory uncertainty.

BitPlanet Research Lab, a research institute under digital-asset treasury company DAT BitPlanet, published a regulatory analysis report on Sept. 23 with that assessment.

According to the report, the U.S. Senate on Sept. 15 rejected a cloture motion to begin debate on the CLARITY Act by a 49-50 vote. The measure fell 11 votes short of the 60 needed, preventing debate on amendments and a final vote on the bill. Reconsideration procedures are under way, however, leaving open the possibility of another vote.

BitPlanet Research Lab said the failed Senate vote does not alter Bitcoin’s regulatory status. The report said the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission, in a joint interpretation issued in March, explicitly identified Bitcoin as an example of a digital commodity rather than a security. Even if legislation on the CLARITY Act is delayed, that interpretation by the current administration does not automatically change.

The report added that a delay in passing the CLARITY Act would disrupt efforts to codify the legal definition of digital commodities and establish statutory rules for spot-market supervision and registration. The bill would require digital commodity exchanges, brokers and dealers to register with the CFTC and would create a supervisory framework for spot trading, it said. With enactment delayed, uncertainty could persist around exchange registration and related rules.

Markets were briefly rattled after the vote failed. U.S. spot Bitcoin exchange-traded funds posted net outflows of $450.4 million on the day of the vote, while Bitcoin fell 3.39%. Shares of Coinbase and Circle dropped 10.10% and 11.41%, respectively. Bitcoin later regained the $80,000 level on Sept. 18, and spot ETFs returned to net inflows on Sept. 17 and Sept. 18.

BitPlanet Research Lab said the failed vote will probably have a limited effect on Bitcoin’s regulatory standing. It said investors should watch for follow-up rules from the SEC and CFTC, as well as whether the Senate holds another vote on the CLARITY Act.