Bitcoin Falls as Clarity Act Hopes Fade
Key Takeaways
- •Bitcoin traded at $63,634, down 2% over the prior 24 hours, after briefly dropping to $62,784.
- •The Clarity Act would create a regulatory framework for the cryptocurrency market if enacted.
- •Polymarket users assign the bill a 35% chance of becoming law this year.
- •Some Democrats say the current version of the legislation is inadequate, despite support from firms such as Fidelity and Goldman Sachs.
- •Lawmakers are trying to advance the bill before the August recess, but the crowded congressional schedule adds another obstacle.
Bitcoin’s price fell further on Tuesday as investors weighed the chances of lawmakers voting on the long-awaited crypto Clarity Act, a bill that would create a regulatory framework for the cryptocurrency market if enacted.
Bitcoin was recently trading at $63,634, down 2% over the previous 24 hours. At one point, the cryptocurrency fell as low as $62,784.
Market observers now assign the Clarity Act a 35% chance of becoming law this year on crypto betting platform Polymarket.
Although major financial institutions such as Fidelity and Goldman Sachs have backed the bill, some Democrats remain opposed to its current version. A group of Democrats said in a statement last week that the legislation, in its present form, falls short.
Several lawmakers are hoping the bill can pass before Congress begins its August recess.
U.S. lawmakers are facing a busy week of voting before the five-week break, including legislation on sweeping Russian energy sanctions. That crowded calendar adds another hurdle for a bill that has already been stuck in Washington for much of 2026, despite passing the House of Representatives last year with strong bipartisan support.
JUST IN: Sen. Mike Haridopolos talks CLARITY ACT on FOX "The Clarity Act helps grow the American economy…CLARITY will allow us to make sure that we are the center of the action on digital assets, blockchain, and the internet in general." pic.twitter.com/x4NtD6sTx6 — Bitcoin Magazine (@BitcoinMagazine) July 28, 2026
JUST IN: Sen. Mike Haridopolos talks CLARITY ACT on FOX "The Clarity Act helps grow the American economy…CLARITY will allow us to make sure that we are the center of the action on digital assets, blockchain, and the internet in general." pic.twitter.com/x4NtD6sTx6
Despite passing the House of Representatives last year with strong bipartisan support, the Clarity Act has been deadlocked for much of 2026. The impasse has been driven in part by concerns from major bankers over stablecoin yield, alongside Democratic objections to ethics language.
Banking lobbyists have said that if crypto exchanges offer attractive yields to customers, banks could lose part of their deposit base.
An updated version of the Clarity Act was introduced last week to address ethics concerns by banning government officials and their families from issuing or promoting crypto.
Republicans are seeking bipartisan support for the bill this week in order to move the legislation forward, with the August recess giving lawmakers a narrow window to advance it. If enacted, the bill would create a regulatory framework for the cryptocurrency market.
This post first appeared on Bitcoin Magazine and is written by Mathew Di Salvo.