US Senate Blocks CLARITY Act, Sparking Crypto Market Sell-Off

The US Senate failed to advance the CLARITY Act, which aimed to establish clearer rules for the digital-asset industry. The bill received 49 votes in favor and 50 against, falling short of the required 60 votes.

This setback has increased regulatory uncertainty for the crypto market, with Bitcoin and Ethereum leading the sell-off. Bitcoin dropped below $75,000, while Ethereum's price fell to $3,358.

The broader market also weakened, with Solana plunging below $96, Hyperliquid to $75, and Zcash to $1,086. XRP plummeted over 10% to hit lows of $1.26.

Leveraged positions across crypto derivatives were liquidated, amplifying the selling pressure. Data from Coinglass indicates that more than $655 million in crypto positions were liquidated, with Bitcoin and Ethereum long positions accounting for roughly $226.72 million and $217 million, respectively.