Bitcoin rises nearly 7% after Clarity Act fails, tops $86,000

Bitcoin rose nearly 7% over a 24-hour period on Monday, six days after lawmakers blocked the Clarity Act. Its price reached $86,247 Monday morning in New York and later stood at $86,225. Bitcoin was up 10% over 30 days. The crypto market structure bill was intended to establish clearer rules for the digital asset industry, but it did not advance after Democrats mostly objected to its ethics provisions. Both Republicans and Democrats blocked the bill. Democratic lawmakers focused on a potential conflict of interest involving President Donald Trump's crypto holdings. Trump and his sons launched several digital asset ventures before his return to office, and his financial disclosure reported roughly $1.4 billion in crypto-related income. The White House says Trump's assets are held in a trust managed by his children and that no conflict exists. Democratic Senator Elizabeth Warren told Congress before the vote that the bill posed a massive risk to families. The Securities and Exchange Commission and Commodity Futures Trading Commission are continuing their rulemaking despite the bill's failure. U.S. bitcoin exchange-traded funds recorded positive net flows last week after investors had withdrawn money at the start of the week. Investors bought nearly $593 million in shares of products managed by BlackRock, Fidelity and Grayscale on Thursday and Friday, according to Farside Investors data. The Federal Reserve raised interest rates last week as expected, but bitcoin's price was not affected by the decision. Bitcoin has performed well in the past in low-interest-rate environments. The price also rose after the U.S. Treasury announced that it would at least double the size of its liquidity-support buyback operations. Trump also hosted crypto industry leaders at the White House and urged lawmakers to pass what he called the powerful Clarity Act.