Clarity Act Advances as 30‑Year Treasury Yield Hits 5%

The Senate Banking Committee voted 15‑9 to advance the Clarity Act, a bill designed to define digital assets and set rules for stablecoins, tokenization and smart‑contract platforms. Supporters say the move brings the United States closer to a comprehensive crypto framework that could encourage institutional participation. At the same time, the Treasury sold 30‑year debt at a 5% yield, the first such level since 2007, signaling higher long‑term borrowing costs. Recent inflation data showed energy prices pushing the consumer price index above forecasts, reinforcing expectations that the Federal Reserve may keep rates higher for longer.

- The Clarity Act passed the committee with a 15‑9 margin, moving it toward a full Senate vote. - Kavi Jain, senior research associate at Bitwise, called the committee vote “a landmark moment for US digital asset regulation” and said it should be “particularly supportive for tokenisation and smart contract platforms such as Ethereum (ETH‑USD) and Solana (SOL‑USD).” - The U.S. 30‑year Treasury yield reached 5.00%, up from 4.70% the previous week, marking the highest level since before the 2008 financial crisis. - Bitcoin (BTC‑USD) traded at $27,800, down 2.3% over the past 24 hours, while Ethereum (ETH‑USD) slipped 1.8% to $1,850. - The total crypto market capitalization stood at $1.12 trillion, down 1.5% day‑over‑day, whereas the S&P 500 rose 0.4% to 5,320 points.

Higher long‑term yields increase the opportunity cost of holding non‑yielding assets like bitcoin, making them less attractive relative to bonds. Regulatory clarity, however, could lower compliance barriers for banks and asset managers looking to launch stablecoin‑backed products or tokenized funds. If the Clarity Act clears the full Senate, platforms such as Ethereum and Solana may see increased institutional inflows, offsetting some yield‑driven pressure. Traders should watch for the next Senate vote on the bill and any further moves in the 30‑year yield, as those two factors will likely dictate crypto’s near‑term direction.