Bitcoin Falls Ahead of Clarity Act Vote. Why Cathie Wood’s Dumping Crypto Stocks.

Bitcoin has climbed 31% in since the start of July but faces a big test later on Tuesday. (AFP via Getty Images)

Key Points

• The Senate is scheduled to vote on the Clarity Act, a key cryptocurrency regulation bill, on Tuesday afternoon.
• The odds of the bill passing this year fell to 19% on Tuesday from 31% on Monday, according to prediction market Polymarket.
• Bitcoin and crypto-exposed stocks fell ahead of the vote, with Bitcoin dropping 1.6% over a 24-hour period to $76,890.

It’s crunch time for cryptocurrencies.

The Senate will vote on the Clarity Act, a key bill for crypto regulation, on Tuesday afternoon.

Bitcoin and crypto-exposed stocks were falling ahead of the vote, though, after enjoying a rally in recent months as the legislation’s chances of being passed have come back from the dead.

It’s still a tight call. GOP senators have been making an 11th-hour push to get support from Democrats, Barron’s reported Monday. But the odds of the bill passing this year slipped to 19% Tuesday from 31% yesterday, according to prediction market Polymarket. Polymarket has a data sharing partnership with Dow Jones, the publisher of Barron’s.

That move, and broader pre-vote nerves are being reflected in crypto markets. Bitcoin fell to $76,900 early in the day, down 1% over the past 24 hours, according to CoinDesk data. The world’s largest cryptocurrency is up 31% since the start of July but remains 12% down in 2026.

Ethereum , the second largest crypto, slipped 1.2% to $2,475, while popular altcoin XRP edged 0.5% higher to $1.40.

Cathie Wood’s ARK Invest took the opportunity to sell crypto-related stocks Monday, according to a trading notification. ARK’s funds sold shares in CoinDesk owner Bullish, crypto exchange Coinbase , stablecoin issuer Circle Internet Group, and Ethereum treasury company Bitmine Immersion Technologies.

Coinbase stock was down 4.5% in premarket trading, after rallying 9% in the previous session. Strategy , the largest corporate holder of Bitcoin, was down 3.7% after a 4.6% rise Monday.

Write to Callum Keown at callum.keown@dowjones.com

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