XRP Crashes 12% on Clarity Act Rejection, Eyes Critical Support

The cryptocurrency market experienced a significant downturn after the US Senate failed to pass the Clarity Act, which had been seen as crucial for the industry's growth. XRP took one of its biggest short-term hits in months, plummeting by around 12.2% within hours.

Ripple CEO Brad Garlinghouse described the outcome as 'painful' but emphasized that cryptocurrency development is not solely dependent on the bill. Stuart Alderoty, CLO of Ripple, reiterated that the vote has no impact on XRP's current legal status in the US.

XRP's price fell from approximately $1.45 to below $1.27 before recovering slightly to around $1.29. A substantial volume spike accompanied this decline, indicating meaningful selling rather than low liquidity was involved.