Senate Rejects CLARITY Act, Crypto Market Loses $370M

The US Senate's rejection of the CLARITY Act has sent shockwaves through the cryptocurrency market, causing over $370 million in liquidations across derivatives markets.

The legislative setback prevented the bill from advancing to floor debate after failing to meet the 60-vote threshold required for cloture. This triggered a wave of sell-offs, with long positions taking the brunt of the losses, accounting for roughly 74% of the total volume.

Bearish pressure pushed Bitcoin's price down towards the $60,000 psychological support zone, while derivatives traders scaled back their exposure across open contracts. The aggregate open interest in Bitcoin futures retreated by 20%, from $61 billion to $49 billion.