BTC Retreats to $77,800 With CLARITY Act Vote Looming and Oil Prices Surging

Bitcoin has slipped back toward $77,800 after climbing above $79,000, with traders turning cautious ahead of the Senate’s CLARITY Act vote as crude oil prices continue to rise.

The market’s largest cryptocurrency was giving up part of Monday’s rally during Tuesday’s Asian session. The move came as lawmakers continued negotiating over the proposed crypto market-structure legislation while higher oil prices added to concerns about inflation and monetary policy.

Bitcoin traded around $77,800 after topping $79,000 on Monday, according to CoinDesk data. Other major cryptocurrencies also weakened, including XRP, ether and solana. XRP dropped to $1.42 from a $1.49 high but remained on track for a potentially bullish golden crossover.

CLARITY Act Negotiations Remain Unresolved

The latest pullback came after reports that Democrats were seeking additional revisions to the Digital Asset Market Clarity Act.

The renewed negotiations followed reports that President Trump had agreed to updated ethics language contained in a Republican Senate draft released over the weekend. Republicans had characterized that version as a final compromise.

Sen. Cynthia Lummis, the Wyoming Republican who has been one of the bill’s most prominent advocates, criticized Democrats for continuing to seek changes.

“The Democrats want more,” Lummis said. “They always want more. If we waited another month, they would want more.” She added, “There’s no end to it.”

The Senate is scheduled to vote Tuesday on a procedural motion to advance the CLARITY Act. The motion needs 60 votes, meaning Republicans will require Democratic support to reach the threshold.

If enacted, the legislation would split regulatory oversight of digital assets between the Securities and Exchange Commission and the Commodity Futures Trading Commission. Supporters argue that the bill would provide much-needed certainty for bitcoin and the broader crypto market.

Armstrong Sees Another Route to Regulation

Even if the legislation fails to advance, some industry executives believe regulatory clarity could still emerge.

Coinbase CEO Brian Armstrong said the SEC and CFTC have already indicated that they are prepared to introduce their own rulemaking.

“Frankly, if it doesn’t pass, it’s also going to be a good outcome because the SEC and the CFTC have said that they’re ready to publish rulemaking,” Armstrong said.

According to Armstrong, the industry could receive regulatory clarity “one way or another” on the day of the Senate vote or within the next day or two.

Crude Oil Adds to Macro Concerns

Energy markets provided an additional challenge for bitcoin as West Texas Intermediate crude futures rose to about $103 per barrel after falling to approximately $100 overnight.

Higher oil prices can increase inflationary pressures and strengthen expectations that the Federal Reserve will keep monetary policy restrictive.

The Fed is expected to raise interest rates by 25 basis points on Wednesday, taking the federal funds target range to 3.75%–4% from 3.50%–3.75%.

The 10-year Treasury yield was already close to 5% on Monday. If the expected rate hike is paired with a hawkish message from policymakers, elevated borrowing costs and Treasury yields could further weigh on bitcoin, which has historically faced headwinds in high-yield environments.