Bitcoin and XRP Await the Fed After CLARITY Act’s Failure: Another Blow Coming?

• BTC-USD
• POLA.PVT

Crypto markets are bracing for the Federal Reserve’s (Fed) rate decision on September 16, just a day after the CLARITY Act failed to advance in the Senate.

XRP dropped nearly 10% toward $1.30, Bitcoin slipped below $76,000, and more than $300 million in leveraged positions got liquidated within minutes.

Why the CLARITY Act Vote Failed

The U.S. Senate failed to advance the CLARITY Act on September 15, falling short in a 49-50 procedural vote that required 60 votes to pass.

Tuesday’s vote was never a final passage vote. Failure stalls formal consideration for now, but it does not permanently kill the CLARITY Act, which sought clearer jurisdictional lines between the SEC and CFTC for digital assets.

Republican Senator Thom Tillis said he will keep working to advance the legislation despite the setback. Meanwhile, Polymarket odds for passage in 2026 fell from roughly 30% to just 5% within a single day.

This is not the end for the Clarity Act. We've made substantial bipartisan progress in large part because of the White House. This procedural motion allows us to continue working towards a positive outcome. https://t.co/mNFxcGMtfU

— Senator Thom Tillis (@SenThomTillis) September 15, 2026

Not everyone agrees with this setback. Senior analyst Eric Balchunas offered a starkly different assessment, saying Tuesday’s failure to reach cloture means the legislation is all but dead.

Why Does Wednesday’s Fed Decision Matter More Now?

With legislative momentum stalled, attention has shifted entirely to the Federal Reserve’s rate decision today, along with updated projections and remarks from Chair Kevin Warsh.

Markets currently price roughly a 92.5% probability of a 25-basis-point hike, which would push the federal funds rate to a range of 3.75% to 4.00%, the first increase since 2023.

🚨 REMINDER: 🇺🇸 FED INTEREST RATE DECISION TODAY AT 2:00 PM ET!

Current: 3.50% – 3.75%
Forecast: 3.75% – 4.00%

HIKE → MARKETS DROP HARD
HOLD → MARKETS RALLY
CUT → MARKETS RALLY HARD

PRESS CONFERENCE AT 2:30 PM ET! pic.twitter.com/Du0sWRoIBp

— Crypto Rover (@cryptorover) September 16, 2026

Treasury yields near 5% already pressuring risk assets broadly. Analysts widely expect the hike itself to matter less than Warsh’s tone during the press conference that follows the announcement.

A hawkish surprise could extend Tuesday’s losses into a deeper pullback. A softer tone, by contrast, could ease pressure across both Bitcoin and altcoins heading into the week’s close.

What Are Traders Watching Right Now?

Trader Michaël van de Poppe views current Bitcoin price levels as a possible sweep of recent lows, expressing continued interest in buying dips near $74,000-$75,000.

Crypto Rover and others note that a delivered hike is largely priced in, so the reaction depends on whether Warsh sounds more hawkish than expected.

I'm positively surprised by the price action of #Bitcoin so far.

Not dumping through, little bounce back upwards.

Everyone, their mother, their cousin and their grandmom are currently shorting #Bitcoin as a shock event, but I don't think that's the play when we've been sweeping… pic.twitter.com/BFDvzBSWRe

— Michaël van de Poppe (@CryptoMichNL) September 15, 2026

Community and technical voices note that XRP is more sensitive to macro news; it led the sell-off and could remain volatile if the Fed turns hawkish. Many expect short-term pressure but see the long-term utility and institutional interest intact. Support near $1.00–$1.10 is being watched closely.

Source: finance.yahoo.com