XRP Sinks 10% as Senate Blocks CLARITY Act, Cryptocurrency Market Slides
XRP plummeted nearly 10% to $1.30 during Asian trading on Wednesday after the US Senate failed to advance the CLARITY Act, a bill aimed at clearer rules for digital assets and their use in traditional finance.
The broader crypto market also weakened following the procedural defeat. Bitcoin slipped around 3% to just above $76,000, while Ether dropped almost 5% to around $2,410.
XRP drew particular attention due to its connection with banking-focused digital asset activity and the RLUSD stablecoin. The CLARITY Act's failure in a 49-50 cloture vote means that disputes over ethics provisions became a central obstacle before the vote.
Michigan Democratic Senator Elissa Slotkin said the ethics safeguards were 'simply too thin' and raised concerns about CFTC staffing, money laundering controls, and terrorist financing provisions. Her remarks formed part of the broader Democratic objections to the legislation.