XRP experienced a sharp decline of nearly 10% to $1.30 on Wednesday during Asian trading, marking it as the worst-performing major digital asset after the U.S. Senate failed to advance the Clarity Act.
The procedural cloture vote concluded at 49-50, falling 11 votes short of the 60-vote threshold required to advance the legislation to floor debate. The bill, which spanned over 600 pages of negotiated legislative text, was intended to establish clearer regulatory guidelines for cryptocurrency markets.
Opposition centered on ethics requirements designed to prevent high-ranking government officials from maintaining financial interests in cryptocurrency ventures during their tenure. Michigan Democratic Senator Elissa Slotkin, who voted against the measure, cited insufficient ethics safeguards and expressed concerns about potential conflicts involving President Trump, members of his family, and Cabinet appointees with cryptocurrency holdings. Slotkin also identified shortcomings in provisions addressing money laundering and terrorism financing, as well as inadequate staffing at the CFTC for enforcement.
Ripple Chief Executive Officer Brad Garlinghouse expressed disappointment over the legislative failure in a social media post, describing the outcome as one that "stings."
Broader Market Impact
Publicly-traded cryptocurrency companies suffered steeper losses than digital assets themselves. Coinbase shares tumbled nearly 9% to $174.42, while Circle stock declined more than 9% to $88.26. Galaxy Digital retreated 8%, Gemini lost 7%, and both Bullish and Riot Platforms recorded 5% decreases.
Among other major digital assets, Ethereum dropped approximately 5% to roughly $2,410, Solana and Dogecoin registered losses near 5%, and Bitcoin declined nearly 3% to slightly above $76,000.
The Federal Reserve's interest rate decision later Wednesday introduced additional market volatility, compounding selling pressure across cryptocurrency markets.
Next Steps
Following the Clarity Act's failure, regulatory attention shifts to the SEC's pending Reg Crypto framework and tokenized securities regulations as potential avenues for achieving regulatory certainty. The next congressional session does not commence until January 2027.
