Crypto Industry's Big Bet on CLARITY Act Crashes on Senate Floor
The crypto industry's most significant push in Washington D.C. stalled after the CLARITY Act failed to secure the required 60 Senate votes to advance, highlighting the limitations of its political influence.
Despite incorporating 126 substantive changes sought by Democrats, including stronger ethics provisions and an expanded role for state attorneys general, the bill fell short of the necessary support.
The vote on cloture, which requires a supermajority, came after extensive efforts to broaden the bill's coalition. However, different constituencies were trying to protect their interests, leading to unresolvable disputes.
Markets reacted negatively to the news, with Bitcoin falling toward $75,000 as regulatory and Fed risks hit simultaneously. The total crypto liquidations reached roughly $533.6 million, including about $355.6 million in long positions.