Crypto Market Plunges as Senate Fails to Pass Clarity Act
The crypto market fell sharply after the Senate failed to pass the CLARITY Act, which aimed to provide clarity on regulatory frameworks for digital assets. The bill was short of the required 60 votes in a key procedural vote, with Senators voting 49-50 against it.
Ethereum (ETH) and other tokens saw significant declines, with ETH falling nearly 5% to $2,356 before closing at $2,396. Ripple (XRP) dropped over 8% in 24 hours and currently trades around $1.30.
The CLARITY Act would have divided oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), providing a clear regulatory framework for crypto assets. However, ethics concerns and disagreements remain a major roadblock to the bill's passage.