Senate Vote Fails, Crypto Market Suffers $571M in Liquidations

The US Senate's failure to advance the CLARITY Act has sent shockwaves through the crypto market, resulting in over $571 million in liquidated long positions within 24 hours.

The bill, which aimed to set clear federal rules for digital assets and define how crypto markets and trading platforms would be regulated, fell short of the 60 votes needed to advance, with a procedural vote of 49-50.

Markets had been pricing in a positive outcome, with Bitcoin climbing from around $77,000 to nearly $80,000 earlier in the week after reports that President Donald Trump was open to making concessions on the bill's ethics provisions.

Roughly $300 million in leveraged long positions were liquidated in about 20 minutes, according to reports, with Bitcoin and Ethereum absorbing the most damage at approximately $190 million each.