Clarity Act Fails to Pass in Senate, Sparking Crypto Sell-Off

The Digital Asset Market Clarity Act failed to pass in the US Senate, sparking a sharp reaction across the crypto market. The bill required 60 votes to advance but fell short, with many Democrats voting against it due to concerns over conflict-of-interest issues.

President Donald Trump's support for stricter blind-trust rules covering his digital asset investments was not enough to win over progressive Democrats, who saw the revised bill as a 'weak fig leaf'.

The failure of the Clarity Act has triggered a sharp liquidation wave in Bitcoin, with prices dropping below $75,000 and triggering $771 million in crypto liquidations. Long positions accounted for nearly $568.5 million of the losses, showing how quickly the sell-off hit leveraged traders.