Crypto Markets Plummet as Senate Fails to Advance CLARITY Act
The crypto market took a sharp turn downward on Monday night after the Senate failed to advance the CLARITY Act, a bill aimed at clarifying regulations for digital assets. The total crypto market cap plummeted by 2.9% over 24 hours, reaching $2.70 trillion. Bitcoin dropped below $75,000 for the first time since August 20, trading at around $76,047.75.
The bill's collapse triggered a wave of liquidations, with more than $300 million in crypto long positions being closed within 20 minutes of the vote's failure. The CLARITY Act had been months in the making, with bipartisan negotiations collapsing just before the vote due to disagreements over ethics provisions.
Despite the setback, some experts point out that the broader regulatory process is not necessarily over and additional crypto-related news is still expected later this week. For now, however, the bill's prospects for 2026 are considered dead, with prediction market odds plummeting to just 5%, an all-time low.
A few tokens bucked the trend, including Zcash, which held relatively steady at $1,132.27, and the Official Trump token, which surged by 16.2%. Firo also jumped 18.4% amidst the broader market decline.