Bitcoin price dropped below $78,000 after reaching a peak of $79,586 on September 14. This volatility followed a shift in sentiment regarding the Digital Asset Market Clarity Act, a bill designed to define jurisdictional boundaries between the SEC and the CFTC.
On the prediction platform Polymarket, the probability of the bill passing rose from approximately 14% to nearly 30% in one day, before falling back to 18%. The legislation is the result of over a year of bipartisan negotiations and includes 126 changes requested by Democrats.
The bill requires 60 votes in a cloture vote scheduled for September 15 to proceed to a full Senate debate. Republicans currently hold 53 seats, necessitating support from at least seven Democrats. Opposition has emerged from some state attorneys general and financial institutions.
Bitcoin currently accounts for roughly 60% of the total cryptocurrency market capitalization, causing its price movements to influence the broader asset class. Shares of Coinbase also reacted to the legislative uncertainty surrounding the proposed regulatory framework.
