Bitcoin Slips Below $73,000 After CLARITY Act Regulatory Optimism Fails

Bitcoin slid below $73,000 on May 28 as regulatory optimism tied to the CLARITY Act failed to prop up prices, reversing from highs above $81,000.

The Western Alternative Crypto Briefing said BlackRock’s iShares Bitcoin Trust, known as IBIT, recorded its second-largest daily outflow on record, framing the move as institutional money heading for the exits.

@coindesk

The same briefing tied the legislative push to the Digital Asset Market Clarity Act, which cleared the Senate Banking Committee with a 15-9 bipartisan vote on May 13-14 and had its draft dropped on May 11.

It also said the bill would create defined classifications for digital assets, placing them into either the commodity or security bucket, with the CFTC leading oversight of what the legislation calls “mature” blockchain technologies.

In the background of that market pressure, the briefing described a key friction point: the legislation mandates 1:1 reserves for payment stablecoins and imposes restrictions on yield-bearing products.

President Donald Trump used Truth Social to promise a “future-proof” market structure for digital assets, writing, “Under my Leadership, we will codify a FUTURE-PROOF Digital Asset Market Structure that cannot be undone by the Crypto Haters.”

In the same post, Trump said, “The new Frontier of Finance is being Built in America, and ‘TRUMP’ will NEVER let Crypto down!”

AMBCrypto

The Unchained Podcast excerpt said the Office of Management and Budget’s Office of Information and Regulatory Affairs began reviewing a CFTC notice of proposed rulemaking on event contracts under Section 5c(c) of the Commodity Exchange Act, described as part of the “standard interagency process.”

That podcast also said the notice remains confidential pending OIRA review, but it would become the agency’s first comprehensive federal rule set governing prediction markets, building on a March advance notice covering insider trading, prohibited contracts, and the architecture of prediction market oversight.

Separately, the Crypto Briefing said Trump set a target for House passage by July 4, 2026, with Senate action expected in June, while also using Truth Social posts to push the bill and criticize financial institutions he said undermine the U.S. position in crypto.

The CLARITY Act’s next steps remain unresolved as the bill cleared the Senate Banking Committee but still faces hurdles before becoming law, with the Crypto Briefing saying debates over stablecoin yield restrictions and ethical provisions need resolution before House and Senate versions can be reconciled.

“President Donald Trump voiced his unwavering support for the cryptocurrency industry on Wednesday, stating that his administration is working to build a robust regulatory framework for digital assets”

Benzinga

Cointelegraph reported that since its passage by the US House of Representatives in July 2025, the CLARITY Act has faced months of delays in the Senate amid government shutdowns, pushback from crypto and banking industry representatives, and concerns over conflicts of interest, including those involving the Trump family.

The InsuranceNewsNet and Benzinga coverage both highlighted Trump’s claim that he would “never let crypto down,” while the InsuranceNewsNet account said Elizabeth Warren (D-Mass.) opposed the bill over conflicts of interest tied to Trump and his family’s involvement in cryptocurrency ventures.

Cointelegraph added that Republicans hold a slim majority in the Senate and will need Democratic votes to pass the bill, with some lawmakers signaling they will withhold support without provisions on ethics.

Against that backdrop, the Crypto Briefing warned that ETF flow data could erode price support around $73,000 if IBIT and other major Bitcoin ETF products continue to see outflows, even as legislative milestones move toward floor votes.