Major cryptocurrencies experienced significant losses following the Senate's rejection of the CLARITY Act, a digital-asset market structure bill that had been under negotiation between Republicans and Democrats.
The procedural vote on the bill failed to reach the 60 votes required to advance, with 49 votes in favor and 50 opposed. Four Republican senators joined Democrats in voting against the measure.
Market Declines
At the time of the vote, Bitcoin traded near $75,976.10, down 3.7%. Ethereum fell 5.2% to $2,404.20, while XRP experienced the largest decline at 7.3%, trading at $1.31.
Liquidations Surge
The market downturn triggered substantial liquidations totaling $669.71 million over 24 hours. Long positions accounted for $571.64 million of the total, with short positions representing $98.06 million. Approximately 116,199 traders were liquidated during the period.
Bitcoin-related liquidations reached $231.63 million, while Ethereum liquidations totaled $220.77 million.
Bill Details
A key sticking point in negotiations was the bill's ethics language. Democrats argued that provisions did not sufficiently protect the interests of federal officials involved in the cryptocurrency market. Republicans had added ethics restrictions and enforcement changes before the vote, but discussions failed to secure the necessary support for the procedural motion to proceed.
