Bitcoin sentiment has turned more bullish after the US Senate Banking Committee advanced the CLARITY Act in a 15-9 vote. The bill seeks clearer rules for digital assets in the United States and aims to reduce the long-running dispute between the SEC and CFTC.
However, Santiment warned that the latest rise in optimism may carry short-term risk. The platform said Bitcoin saw a ‘major spike of euphoria’ across social media after the vote. It added that markets often move against crowd expectations when sentiment becomes too one-sided.
The Senate Banking Committee advanced the CLARITY Act on May 14 after a bipartisan vote. All 13 Republican members supported the bill, while two Democrats also voted in favor. Nine Democrats opposed the measure.
The bill now faces a harder stage in the Senate. Lawmakers still need to settle policy disputes and build wider support before the legislation can move closer to passage.
The CLARITY Act seeks to define how digital assets should fall under US law. It would give the CFTC more authority over many digital commodities, while the SEC would continue to oversee crypto assets treated as securities.
This framework could give exchanges, token issuers, investors, and financial firms clearer operating rules. The crypto industry has faced years of uncertainty over which federal agency should oversee different assets.
Santiment said the committee vote triggered a sharp rise in bullish Bitcoin comments across social media. The firm said bullish comments now outnumber bearish comments by 1.55 to 1.
The sentiment platform linked the shift to renewed hopes that the CLARITY Act could move closer to becoming law. It said any movement toward passage could support crypto in the long run because clearer rules may attract more market participants.
Still, Santiment urged caution over the short-term reaction. “We advise caution,” the firm said. It also said markets ‘typically move opposite to the crowd’s expectations at all times.’
That warning gave the latest Bitcoin rally a mixed reading. Strong optimism may support attention around the asset, but crowded bullish views can also raise the risk of a pullback.
Bitcoin traded at $77,866 on Saturday, down 3.35% from the previous close. The token moved between $77,809 and $80,733 during the session, showing that regulatory progress did not remove near-term price pressure.
The move came as traders weighed the CLARITY Act vote against broader caution in the crypto market. Other sentiment tools also showed weaker confidence. The Crypto Fear & Greed Index posted a ‘Fear’ score of 31 on Saturday.
This created a split market picture. Social media activity showed stronger optimism, while price action and broader sentiment showed that many traders remained careful.
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The CLARITY Act has not become law. White House crypto adviser Patrick Witt said the committee vote was ‘a major step forward,’ but he also warned that more work remains before the bill is ready.
Several issues still stand in the way. Lawmakers continue to debate SEC and CFTC authority, stablecoin reward rules, AML standards, KYC requirements, and DeFi developer liability.
Some Democrats also raised concerns over anti-money laundering safeguards and possible conflicts of interest linked to political officials. These concerns add more uncertainty before the bill reaches a wider Senate vote.
The timing also matters. Congress faces a tight window before the summer recess. If lawmakers miss that period, the bill could face more delays during a busy political calendar.
For Bitcoin, the CLARITY Act has created fresh optimism. However, Santiment’s doubt-focused warning keeps attention on whether the market has priced in too much good news before lawmakers finish the process.