Bitcoin hit by Senate crypto bill rejection and first Fed rate hike in three years
Two setbacks hit Bitcoin in two days
Bitcoin, the largest cryptocurrency, sold off after the US Senate failed to advance a crypto regulation bill known as the Clarity Act on Tuesday, September 15, 2026. Shares of major crypto companies, including exchange operator Coinbase Global and Circle Internet Group, also fell.
The next day, Wednesday, September 16, the Federal Reserve raised interest rates for the first time in three years. Bloomberg described the combination of the failed bill and the rate increase as a "double whammy" for Bitcoin.
Key points
- The Senate did not advance the Clarity Act, a bill that the crypto industry had hoped would provide clearer rules.
- Bitcoin sold off and crypto-related stocks including Coinbase and Circle sank after the vote.
- The Federal Reserve raised interest rates on Wednesday for the first time in three years.
- Bloomberg reported that retail investor interest in crypto has weakened and that higher rates and tighter liquidity have weighed on the market.
What the Bloomberg report says
Bloomberg reported that the Clarity Act was expected to be the next positive catalyst for a struggling crypto market, with supporters hoping for relief from Washington. That expected breakthrough did not happen.
According to the report, higher interest rates have historically been unfavorable for Bitcoin and other tokens because they do not pay interest or yield. The report describes this as a claim about historical patterns rather than a prediction.
What is confirmed
- The Senate failed to advance the Clarity Act on Tuesday, September 15, 2026.
- The Federal Reserve raised interest rates on Wednesday, September 16, 2026, the first increase in three years.
- Bitcoin sold off and Coinbase and Circle shares fell after the Senate vote.
What is still unclear
The supplied source does not include exact price figures, the size of the Fed rate increase, the Senate vote tally, or any details about what happens next with the Clarity Act. Whether the bill will be reconsidered is not stated in the source.
Why this matters for the crypto market
Crypto investors had been waiting for new US regulation that could give the industry clearer rules and more certainty. The Senate's failure to move the bill removed a source of support that the market had been counting on, according to Bloomberg. At the same time, higher interest rates make assets that pay no interest, like Bitcoin, less attractive to some investors compared with traditional savings.
