XRP Plummets 10% After Senate Blocks CLARITY Act

The US Senate's failure to advance the CLARITY Act sent shockwaves through the cryptocurrency market, with XRP experiencing its biggest decline among major cryptocurrencies. The bill, which aimed to restrict senior public officials' business interests in crypto, fell short of the 60 votes needed to move forward.

XRP plummeted nearly 10% after the vote, trading at around $1.30 during Asian morning hours on September 16. This significant drop was not limited to XRP, as other major cryptocurrencies such as Ether and Solana also experienced losses of around 5%. Dogecoin and Zcash fell by almost 5%, while Hyperliquid declined by approximately 4%.

Crypto-related stocks were hit even harder, with Coinbase and Circle plummeting about 9%, Galaxy Digital falling 8%, and Gemini losing 7%. The failure to advance the CLARITY Act has shifted market attention towards regulators, particularly the US Securities and Exchange Commission's work on a regulatory framework for crypto assets.

The Federal Reserve's rate decision later in September will also be closely watched, with traders leaning towards a 0.25 percentage-point rate increase that could exacerbate volatility in crypto markets.