Bitcoin’s Tipping Point: Washington’s CLARITY Vote Meets Billion-Dollar Balance Sheet Wreckage

Schwab begins direct Bitcoin and Ether trading for retail as Bitcoin ETF outflows hit $1.26 billion and corporate holders report billion-dollar write-downs, while Senate weighs CLARITY Act.

The market for Bitcoin is pulling in opposing directions this week. On one side, Charles Schwab’s rollout of spot crypto trading signals deeper integration with mainstream finance. On the other, a wave of billion-dollar write-downs at corporate holders reveals just how brutal the first quarter’s sell-off has been. And in Washington, a Senate committee vote on the CLARITY Act could reshape the regulatory landscape for years to come.

Schwab began its phased launch of direct spot Bitcoin and Ethereum trading for US retail clients on May 13, 2026. The brokerage, which oversees roughly $12 trillion in client assets, is charging 75 basis points per trade. Initial access is limited to customers on a waitlist, with broader availability expected over the coming months. Paxos handles sub-custody and trade execution. The move shifts the entry point for many investors away from indirect vehicles like ETFs toward native exposure on a platform that already serves millions.

Yet the ETF channel itself is bleeding. Wednesday saw $635 million in net outflows from Bitcoin funds — the largest single-day drain since January 29. Over five trading sessions, withdrawals totaled $1.26 billion. The price has stalled in response: Bitcoin last changed hands at $79,546, down 1.16% on the day and trading below its 200-day moving average. The rally that followed the start of the year has lost momentum, weighed down by persistent inflation fears that are souring appetite for risk assets.

That same price slide has carved deep holes in corporate balance sheets. Japan’s Metaplanet, the largest listed Bitcoin holder in the country, reported a net loss of roughly $726 million for the first quarter, almost entirely attributable to the revaluation of its crypto stack. The company nonetheless added 5,075 BTC during the period and now holds 40,177 coins — about 87% of all Bitcoin owned by Japanese listed firms. It is targeting 210,000 BTC by the end of 2027.

Twenty One Capital posted an even steeper net loss of $859.7 million, with $847.8 million coming from Bitcoin write-downs. The fair value of its holdings sank from $3.80 billion to $2.95 billion. Management says its cash reserve of $114.1 million provides at least a year of runway. In the US, Nakamoto recorded a GAAP loss of $238.8 million, driven by a $102.5 million hit from the drop in Bitcoin’s price — from $87,519 to $68,220 over the quarter — plus a $107.7 million loss on a call option. In Hong Kong, Boyaa Interactive expects a quarterly loss of roughly $60 million, citing a 23.8% decline in the value of its Bitcoin holdings, more than double the year-ago period.

The pain is shaking confidence in the corporate treasury model. The Bitcoin Society announced on May 12 that it is halting its accumulation program, blaming the first-quarter downturn and the resulting difficulty in raising capital. Jane Street, a major institutional player, slashed its position in the iShares Bitcoin Trust by 71%, reducing its stake from 20.3 million to 5.9 million shares. The firm also sold 78% of its MicroStrategy shares over the same period.

Not everyone is retreating. Strategy continues to buy, financing fresh acquisitions through its STRC preferred stock. The company now holds 818,869 BTC, worth roughly $65.7 billion at current prices. Analysts at K33 Research note a recurring purchasing pattern around the 15th of each month.

All of this forms the backdrop to today’s Senate vote on the Digital Asset Market CLARITY Act. The Banking Committee is set to decide on the 309-page bill at 10:30 a.m. ET, after it cleared the House in 2025. The legislation would split oversight between the SEC and the CFTC and, crucially, codify Bitcoin as a digital commodity under federal law — making future regulatory reversals far harder.

The vote is tight. The committee has 13 Republicans and 11 Democrats, meaning every GOP member must be on board. Chairman Tim Scott has described the margin as the “red zone,” and Senator John Kennedy has yet to declare his support. Cynthia Lummis has warned that if the bill fails, a delay of months is likely since Congress goes into recess for Memorial Day on May 21. Citi has pegged its 2026 Bitcoin price target of $143,000 directly to the bill’s passage, forecasting a wave of ETF inflows if it becomes law.

Meanwhile, one of the largest publicly traded miners is pivoting. MARA Holdings sold roughly 20,880 Bitcoin worth $1.5 billion in the first quarter, aiming to redirect capital into AI and high-performance computing data centers. The move underscores how even companies built around Bitcoin are adjusting their strategies in a more volatile rate environment.

At around $79,500, Bitcoin sits about 10% below where it started the year. The February low of roughly $63,000 is a reminder of how fast the floor can drop. For now, the market is caught between a potential regulatory breakthrough that would legitimize the asset class, and a balance-sheet reckoning that shows just how quickly the downside can spread.