Crypto Longs Lose $571M After Senate Fails to Advance CLARITY Act
Crypto exchanges liquidated approximately $571 million in long positions over 24 hours after the U.S. Senate failed to advance the CLARITY Act on September 15.
The largest losses were suffered by Bitcoin and Ether longs, with around $190 million each being wiped out. XRP longs lost about $30 million, while Solana long liquidations totaled approximately $22 million overnight.
The failed cloture vote left the CLARITY Act short of the required 60 votes, with the Senate ultimately voting 49-50 against advancing the bill. The legislation had been seen as a potential catalyst for increased adoption and trading in Ethereum, but its failure has led to significant losses for traders who were long on the asset.
The SEC and CFTC can continue their work on crypto regulation despite the Senate's decision, with Coinbase CEO Brian Armstrong stating that 'The SEC and CFTC have the tools they need to create clear rules under existing authority.'