# Crypto prices crash as CLARITY Act fails

> Bitcoin and ethereum tumble after Senate rejects digital asset regulation bill, with Fed rate decision looming.
- Title: Crypto prices crash as CLARITY Act fails · Yahoo Finance
- Summary: Bitcoin and ethereum tumble after Senate rejects digital asset regulation bill, with Fed rate decision looming. The failure of the CLARITY Act to pass the…
- Keywords: bitcoin, ethereum, cryptocurrency, clarity act, senate vote, federal reserve, interest rates, crypto regulation, digital assets, market decline, business, finance
- Source: Yahoo Finance — https://finance.yahoo.com/personal-finance/investing/article/bitcoin-and-ethereum-prices-today-wednesday-september-16-2026-crypto-prices-tank-after-clarity-act-fails-and-ahead-of-fed-decision-112517152.html
- Published: 2026-09-16T11:25:17+00:00
- Read time: 2 min
- Topics: bitcoin, ethereum, cryptocurrency, clarity act, senate vote, federal reserve, interest rates, crypto regulation, digital assets, market decline, business, finance
## Bitcoin drops 3.3% overnight
Bitcoin opened at $75,586.51 on Wednesday, September 16, 2026, down 3.3% from Tuesday's opening. It recovered slightly to $75,885.53 by 7:12 a.m. ET.
## Ethereum falls 4.6% in morning trading
Ethereum opened at $2,397.64 on Wednesday, down 4.6% from Tuesday's opening price. The price moved up to $2,404.43 by 7:12 a.m. ET.
## CLARITY Act fails Senate vote
The Digital Asset Market CLARITY Act fell short of the required 60 votes in a procedural Senate vote on Tuesday. The bill aimed to establish a regulatory framework for the crypto industry.

> Govt feels broken. 18 months of work between our industry, Democrats, and Republicans, and Clarity falls apart on the 5-yard line.
## Ethics concerns derailed the deal
Senate Democrats blocked the bill over government ethics provisions and presidential conflicts of interest. Republicans opposed limits on a president's ability to profit from digital assets.
## Fed rate hike expected today
The Federal Reserve is expected to raise interest rates later on Wednesday, September 16. This would be the first rate increase in three years.
## Bitcoin down 34.5% year-over-year
Bitcoin is down 34.5% compared to one year ago, though it's up 19.9% over the past month. The all-time high was $126,198.07 on October 6, 2025.
## Ethereum down 47% year-over-year
Ethereum has fallen 47% over the past year but gained 27.5% in the last month. Its all-time high was $4,953.73 on August 24, 2025.
## Crypto sales trigger tax events
You owe taxes when you sell cryptocurrency for profit or exchange one digital asset for another. Holding periods matter: less than a year means higher tax rates, while longer holds get lower rates.
## Timing can save thousands on taxes
The difference between holding crypto for less than a year versus longer can result in tax rate differences of 17% or more. A few days can make a significant financial difference.
## Key takeaway

The failure of the CLARITY Act to pass the Senate has triggered significant crypto losses, signaling regulatory uncertainty ahead of a potential Fed rate hike.