Ethereum Slumps Below $2,400 After Senate Rejects CLARITY Act

Ethereum plummeted below $2,400 after the US Senate's rejection of the CLARITY Act in a 49-50 vote. The regulatory setback triggered a broad crypto selloff, pushing Bitcoin under $75,000.

The decline marked a sharp reversal from just days ago, when ETH was trading near $2,600 and market participants were discussing a push toward $3,000.

Regulatory ambiguity persists after the CLARITY Act's defeat, historically weighing on institutional appetite for crypto exposure. Roughly $300 million in long positions were liquidated across major cryptocurrencies within minutes of the vote.