Clarity Act Fails in Senate, Sending Crypto Markets into Free Fall

The Clarity Act, aimed at regulating cryptocurrency in America, failed to advance in the Senate due to disputes over ethics safeguards and regulatory staffing. The bill was voted down with a 49-50 procedural vote, falling short of the required 60 votes.

XRP led the decline among major cryptocurrencies, plummeting nearly 10% to $1.30 after the news. Ethereum dropped around 5% to about $2,410, while Solana and Dogecoin fell close to 5%. Other major tokens such as BNB and Tron slipped by around 1%.

Crypto equities suffered steeper losses than the tokens, with Coinbase plummeting nearly 9% to $174.42 and Circle dropping more than 9% to $88.26.

Senator Elissa Slotkin, a Michigan Democrat, voted against the bill due to its 'ethics provisions being simply too thin', pointing out that President Trump's children and Cabinet members are earning billions in crypto. She also criticized the lack of staffing at the Commodity Futures Trading Commission and the bill's gaps on money laundering and terrorist financing.