Senate Fails to Advance CLARITY Act, Crypto Market Suffers Sharp Decline
The crypto market experienced a significant downturn on Monday night after the Senate failed to advance the CLARITY Act. The bill's collapse triggered a sharp selloff, with the total crypto market cap falling to $2.70 trillion, down 2.9% over 24 hours.
Bitcoin dropped to $76,047.75 and later broke below $75,000 for the first time since August 20. Ethereum slid to $2,406.95, down 3.5%, while XRP fell to $1.34, down 1.0%.
More than $300 million in crypto long positions were liquidated within 20 minutes of the vote's failure. Bipartisan negotiations on the bill collapsed just before the vote, with staff for Senator Tim Scott abruptly ending final talks on ethics provisions.
The cloture motion needed 60 votes to advance the bill and fell short. Democrats including Gillibrand, Warner, Booker, Warnock, Gallego, Alsobrooks, and Cortez Masto voted no, as did Republican Senators Susan Collins, Josh Hawley, and Jerry Moran.