Bitcoin Plunges Below $75K as CLARITY Act Fails Senate Vote

The Digital Asset Market Clarity Act, a highly anticipated bill aimed at regulating cryptocurrencies in the US, failed to pass in the Senate. The bill fell short of the required 60 votes, triggering a sharp 'sell-the-news' reaction across the crypto market.

Bitcoin price crashed below $75,000 after the vote, dropping 4.6% and causing over $771 million in liquidations. This sharp decline was largely driven by long positions, which accounted for nearly $568.5 million of the losses.

The CLARITY Act had undergone significant changes to win bipartisan support, including a last-minute substitute text with 126 bipartisan amendments. However, progressive Democrats were still not convinced, and Senator Elizabeth Warren attacked the revised bill on the Senate floor, calling it a 'weak fig leaf' that did not address broader conflict-of-interest concerns.

Despite its failure to pass, the CLARITY Act is not entirely dead yet. The Senate could bring the bill back for another vote as early as September 17, but time is running short with only limited session days left before the October 2 deadline.