Updated

Bitcoin and ethereum prices declined after the CLARITY Act, a crypto regulatory bill, failed to pass, adding uncertainty to the digital asset market just as investors also await the Federal Reserve's interest rate decision. The failure of the legislation removed a potential source of regulatory clarity that market participants had been anticipating. The combination of the bill's failure and pre-Fed-decision caution weighed broadly on crypto markets, with traders bracing for further volatility depending on the outcome of the Fed meeting later in the day.