Crypto assets rally as Trump urges passage of Clarity Act

Bitcoin and Ethereum experienced a sharp increase in value on Thursday, 20 August 2026, following President Donald Trump’s public call for Congress to pass the Clarity Act. The legislation seeks to define whether cryptocurrencies are regulated as securities or commodities, a distinction that has remained a source of uncertainty for investors and institutions alike.

Bitcoin opened at $69,289.44, marking a 7.1 per cent rise from the previous day’s opening price. By 9:15 a.m. Eastern Time, the price had climbed further to $71,980.32. Ethereum saw an even more pronounced surge, opening at $2,251.93, up 17.5 per cent from Wednesday. The digital currency continued its upward trajectory, reaching $2,293.10 by 9:16 a.m. Eastern Time.

The price action was supported by a decline in long-term Treasury yields. This shift followed an announcement from the U.S. Treasury that it would double its buybacks of long-term debt. Historically, lower long-term borrowing rates tend to boost demand for riskier assets, such as digital currencies, as investors seek higher yields in a low-interest-rate environment.

The Clarity Act is currently stalled in the Senate, with a procedural vote scheduled for September. While the bill’s eventual passage is not guaranteed, the President’s push has provided immediate momentum to the market. The regulatory clarity offered by the Act would determine the primary oversight framework for crypto assets, potentially reducing compliance costs and legal ambiguity for market participants.

For context, Bitcoin’s all-time high stands at $126,198.07, recorded on 6 October 2025. The asset’s all-time low was $0.04865 on 14 July 2010. The recent rally places the current price of Bitcoin at a significant discount to its peak, suggesting room for further appreciation if legislative progress continues.

Investors are now watching for the outcome of the September procedural vote in the Senate. Until then, the market remains sensitive to both legislative developments and broader macroeconomic signals, such as Treasury yield movements. The interplay between regulatory clarity and monetary policy will likely continue to drive volatility in the crypto sector.