Senate Blocks CLARITY Act, Sparking Crypto Market Decline

The U.S. Senate failed to advance the CLARITY Act in a key procedural vote, leading to a sharp decline in major cryptocurrencies including Bitcoin, Ethereum, and XRP.

The legislation aimed to establish a broader regulatory framework for digital assets in the United States, but it fell short of securing the 60 votes needed to move forward. The motion received 49 votes in favor and 50 against, with four Republicans joining Democrats in opposing the measure.

The CLARITY Act's failure has added uncertainty to the crypto market, triggering $669.71 million in liquidations across the derivatives market. Bitcoin, Ethereum, and XRP were among the hardest hit assets, falling by 2.1%, 3.4%, and 8.3% respectively.