The US Senate Banking Committee approved the Digital Assets Clarity Act (DACA) on May 14, 2026, by a vote of 15 to 9, triggering an immediate response in the cryptocurrency markets. And he got up Bitcoin It touched the $81,965 level before retreating slightly, while crypto-related stocks posted their biggest single-session gains in months.
An arrow jumped Coinbase By 9.10%, the title increased MicroStrategy by 8.16%, while adding Robin Hood 6.16%, as the market begins to price in what could be the most significant crypto regulatory legislation ever enacted in the United States. The most important analytical question now remains: Does this move represent a structural reassessment of the market or is it simply a rally of relief ahead of the battle for a full Senate vote and the process of reconciling the legislative versions?
How did the DACA framework cause the liquidation of short positions?
Traders have been following the DACA bill’s progress through committee for months, and the May 14 vote provided the structural clarity the market feared was lacking. The basic mechanism is the division of powers between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC); The law defines which digital assets fall under the SEC’s jurisdiction as securities and which fall under the CFTC’s jurisdiction as commodities, ending years of “regulation by enforcement” that kept institutional capital at bay.
The House version, passed by a vote of 294-134 last year, gives the CFTC exclusive jurisdiction over digital commodity spot markets, while maintaining the SEC’s authority over investment contract assets. The “decentralization threshold” test constitutes the operational standard; If the network meets this standard, the underlying token moves from the SEC Securities System to the CFTC Commodity Framework. This distinction is precisely what has led to pressure on short sellers.
Assets previously classified by the SEC as unregistered securities, including tokens on networks with a high degree of decentralization, were among the most shorted positions ahead of the vote. When the committee passed the bill with bipartisan support, short positions worth more than $250 million were liquidated in just four hours.
Can Bitcoin maintain the $81,000 level?
Bitcoin has already started to integrate the voting results before their official release, and the price currently stands at $80,500. The $85,000 level represents the first real supply ceiling for any continuation move, and is the level that saw collapse during the correction that occurred between February and March.
Smooth progress toward a full Senate vote, with the framework between the SEC and CFTC maintained, could turn short covering into new buying. In this scenario, Bitcoin could regain the $85,000 level, while altcoins will achieve a second rally, as tokens on decentralized networks candidates for classification as commodities will benefit the most, making the revaluation real and sustainable.
However, if the law is lobbied to change stablecoin provisions, conflict of interest rules, or restrictions on central bank digital currencies (CBDCs), the chances of adoption will be between 60% and 70%, and markets could move sideways between $78,000 and $84,000, pending the Senate’s political calculations being clear.
In the event of failure to muster the necessary votes (60 votes) and the coalition collapses, the dynamic will abruptly reverse and short selling positions will rebuild again, which could lead to the loss of all gains from the recent short liquidation. The bipartisan committee vote remains the strongest evidence of the bullish scenario, as Democratic Sen. Ruben Gallego and Sen. Angela Alsobrooks’ embrace of the vote is a strong indication, although not a definitive guarantee, of the feasibility of a public vote. So you should watch Bitcoin’s daily close above $84,500 instead of just focusing on the news headlines.
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