On May 14 the Senate Banking Committee approved the Digital Asset Clarity Act in a 15-9 vote, delivering defined SEC and CFTC jurisdictions for digital assets. Bitcoin climbed to $81,965 and equity plays surged, with Coinbase up 9.10%, MicroStrategy jumping 8.16% and Robinhood rising 6.16%.

The act establishes that commodities fall under CFTC oversight while investment contracts remain SEC-regulated, using a decentralization threshold test. Tokens on networks meeting the decentralization criteria shift to a commodities framework, aiming to bring structural clarity to previously ambiguous digital asset classifications.

Market positioning ahead of the vote saw heavy short bets on assets deemed unregistered securities; the committee’s approval triggered over $250 million in short-position liquidations within four hours. The sudden buy-in exemplified relief rally dynamics and highlighted the potential for further short-covering pressure.

The bill now advances to a full Senate floor vote and subsequent conference reconciliation, with the framework’s integrity key for institutional inflows. A successful floor vote could propel Bitcoin toward the $85,000 supply ceiling and sustain bullish momentum in crypto-linked equities.