Cryptocurrencies Hit by CLARITY Act Setback and Rate Hike as Bitcoin Falls Below $76K

Bitcoin fell below $76,000, while Ethereum, Solana, Dogecoin, and XRP struggled at key levels, after the Senate failed to advance the CLARITY Act and the Federal Reserve raised interest rates by 25 basis points.

Cryptocurrency market analyst Ray Salmond said the legislative "setback" is unlikely to derail the broader growth and adoption of cryptocurrencies.

Why the failure is a "setback" rather than a "derailment"

Salmond said in an interview with Schwab Network on Wednesday that the regulatory narrative is now shifting from legislation to rulemaking.

Following the failure of the CLARITY Act to advance, the SEC and CFTC are expected to fill some of the regulatory gaps.

However, industry executives and analysts warned that institutional rules could be more vulnerable to political changes and legal challenges than bills passed by Congress.

Salmond expects regulators to continue moving forward regardless of whether the CLARITY Act returns next year or later.

This could allow Wall Street's crypto expansion to persist.

He added that a clearer framework like the CLARITY Act would provide a stronger legal foundation for U.S. crypto companies, while making it easier for offshore firms to relocate their headquarters to the U.S., raise capital, and integrate with traditional finance.

He expects companies including BlackRock, ARK Invest, and Fidelity to further delve into the SEC's potential tokenization framework, paving the way for more tokenized securities, 24-hour trading, and deeper integration between traditional financial markets and crypto platforms.

Warsh announces first rate hike, with more possibly to follow

Elsewhere, the Federal Reserve implemented the widely anticipated 25-basis-point rate hike and projected one additional hike by year-end. Gold and equities fell following the announcement, which is widely seen as the start of a new tightening cycle heading into 2027.