The CLARITY Act Was Still Stuck… But Bitcoin Just Broke $71K

Bitcoin broke above $70,000 on Thursday as President Donald Trump renewed his call for Congress to pass the CLARITY Act, triggering a broad rally across digital assets and crypto-related equities.

The move comes as investors increasingly focus on the prospects of a clearer U.S. regulatory framework for cryptocurrencies. Bitcoin climbed to around $71,700, while Ethereum advanced to its highest level in more than three months. XRP also posted a strong gain.

The rally extended across publicly traded crypto companies. Coinbase rose 8.4%, Strategy gained 10%, Canaan jumped 20%, Circle advanced 8%, and Robinhood climbed 5%. Bitcoin miners including Riot Platforms, MARA Holdings, Hut 8 and Bit Digital also recorded gains of between 3% and 6%.

Trump’s latest comments followed a White House meeting with cryptocurrency executives and financial regulators, where the administration renewed its support for legislation aimed at providing greater certainty to the digital-asset industry.

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The CLARITY Act seeks to establish clearer boundaries between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

Under the proposed framework, many digital commodities would fall primarily under CFTC oversight, while assets classified as securities would remain under the SEC’s jurisdiction. The legislation would also introduce registration requirements for crypto exchanges, brokers and dealers, alongside provisions covering consumer protection and anti-money-laundering compliance.

For the industry, passage would represent a significant shift away from the regulatory uncertainty that has shaped the U.S. crypto market for years.

Despite the market’s immediate response, the legislation still faces a difficult path through the Senate.

Senate Majority Leader John Thune has filed a cloture motion for September 15, setting up a critical procedural vote. The bill requires 60 votes to advance.

Senate Banking Committee Chairman Tim Scott has accused Democrats of deliberately preventing the legislation from moving forward. Democrats, however, have called for stronger investor protections, tougher anti-money-laundering provisions and stricter restrictions on government officials profiting from crypto-related ventures.

The ethics provisions have emerged as one of the most politically sensitive issues, particularly given Trump’s own involvement in cryptocurrency businesses.

Disagreements also remain over stablecoin yield provisions and enforcement authority.

The Senate left Washington for its August recess without taking up the bill. Lawmakers are expected to return on September 14, leaving a limited legislative window before the October election recess.

The latest rally is not being driven by regulation alone.

Market participants are also watching a potential rotation of capital away from AI and semiconductor stocks and back toward digital assets. Bitcoin had spent weeks consolidating below the $70,000 level, making Thursday’s move a significant technical breakout.

The response has been particularly strong across major crypto assets. Hyperliquid’s token surged around 26% after Trump said CFTC Chair Mike Selig was involved in efforts to bring the decentralized exchange into the U.S.

Trading activity has also accelerated. CNBC reported that trading volume in the iShares Bitcoin Trust ETF was already more than 4.5 times its 30-day average before the Hyperliquid announcement.

Erald Ghoos, CEO of OKX Europe, believes the combination of regulatory progress and capital rotation could provide another catalyst for the crypto market.

Ghoos said capital that previously moved into AI, semiconductor stocks and other high-growth assets could eventually return to digital assets as market momentum shifts.

He also pointed to growing institutional participation, clearer regulatory frameworks in the U.S. and Europe, and greater accessibility to decentralized finance as factors that could support broader crypto adoption.

His outlook is more optimistic than that of OKX Global Managing Partner Haider Rafique, who has argued that much of the market’s optimism surrounding the CLARITY Act may already be reflected in Bitcoin’s price.

Bitcoin’s move above $70,000 has put the CLARITY Act firmly back at the center of the crypto market.

The key question is whether the current rally can hold if legislative progress fails to materialize.

A successful September 15 vote would strengthen expectations for regulatory clarity and could provide another boost to institutional confidence in U.S. digital assets. A failure to secure the required 60 votes, however, could quickly revive concerns over regulatory uncertainty.

For investors, September 15 is now the critical date to watch.

The latest Bitcoin breakout has been fueled by renewed political support for crypto regulation. Whether that momentum develops into a sustained market recovery may ultimately depend on whether Congress can turn that political support into legislation.