Senate Fails to Advance CLARITY Act, Sparking Crypto Market Selloff

Crypto markets took a significant hit on Monday night after the Senate failed to advance the CLARITY Act, sparking one of the sharpest selloffs in recent weeks. The total crypto market cap plummeted by 2.9% over 24 hours, falling to $2.70 trillion.

Bitcoin was particularly affected, breaking below $75,000 for the first time since August 20, while Ethereum and XRP also saw significant declines of 3.5% and 1%, respectively. Over $300 million in crypto long positions were liquidated within a 20-minute window following the vote's failure.

The collapse of the CLARITY Act was largely due to bipartisan negotiations falling apart just before the vote, with staff for Senator Tim Scott abruptly ending talks on ethics provisions. Several senators from both parties voted against cloture, including Democrats and Republicans who had previously supported the bill.