XRP fell nearly 10% to $1.30 on Wednesday as the Senate rejected the Clarity Act in a 49-50 procedural vote, triggering a broad cryptocurrency sell-off. The bill required 60 votes to advance but fell 11 votes short.
The cryptocurrency market declined across major tokens. Ether dropped nearly 5% to about $2,410, while Solana fell 5% to just above $97 and Dogecoin declined nearly 5%. Bitcoin slipped nearly 3% to just above $76,000. BNB and Tron saw the mildest declines at about 1% each.
Crypto stocks suffered larger losses than tokens. Coinbase fell nearly 9% to $174.42 and Circle dropped more than 9% to $88.26. Galaxy Digital declined 8%, Gemini 7%, and several other crypto-related equities fell between 3% and 5%.
Why the Bill Failed
Multiple Republicans voted against advancing the bill. Senator Elissa Slotkin, a Michigan Democrat, cited three reasons for voting no: ethics provisions she considered insufficient, the Commodity Futures Trading Commission's lack of staffing to implement the law, and gaps in the bill's approach to money laundering and terrorist financing. She noted that President Trump, his children, and Cabinet members were earning money in the crypto space.
Negotiators had produced more than 600 pages of compromise text before the bill stalled on ethics language meant to prevent senior government officials from maintaining crypto business interests.
What Happens Next
Regulatory efforts now shift to the Securities and Exchange Commission, which is developing its proposed Reg Crypto framework and rules for tokenized securities. The Federal Reserve scheduled an interest-rate decision for later Wednesday.
