The CLARITY Act, a bill aimed at establishing comprehensive rules for the US cryptocurrency market, failed to advance in a key Senate vote. A procedural motion to move the bill forward received 49 votes in favor and 50 against, falling short of the 60 votes required.
Bitcoin fell toward $76,000 following the decision. Ethereum approached $2,400, while XRP lost nearly 10%. JrKripto’s liquidation data showed $633.1 million in positions liquidated over the preceding 24 hours.
The vote did not determine whether the bill would become law. Senators voted on a procedural step needed to advance its consideration. When that motion failed, the bill stalled in the Senate. According to AP, all Democrats and four Republican senators voted against advancing it.
Why did the CLARITY Act stall?
The CLARITY Act aims to clarify when digital assets should be treated as securities or commodities. It also proposes a framework for dividing oversight of the crypto market between the SEC and the CFTC.
Negotiations stalled over rules governing public officials’ financial interests in crypto businesses. Democratic senators argued that the bill’s ethics provisions did not do enough to address the crypto interests of President Donald Trump and his family.
Republicans revised the text before the vote. The changes would have given state attorneys general more authority to enforce the ethics provisions, but they did not secure enough support. Banks’ objections to stablecoin rewards were another point of disagreement. The Senate could hold another procedural vote, although no date has been set.
Bitcoin, Ethereum and XRP decline
Following the vote, Bitcoin fell roughly 3% and traded around $76,000. Ethereum dropped about 5% to $2,410. XRP lost nearly 10%, falling toward $1.30.
Solana traded just above $97, while DOGE declined about 5%. The price moves showed that selling had spread across major cryptocurrencies.
Bitcoin had already been falling before the vote, so the entire decline cannot be attributed to the result. Still, the bill’s failure to advance added uncertainty for a market awaiting clearer regulation.
JrKripto data shows $633 million in liquidations
According to JrKripto’s liquidation data, $633.1 million in crypto positions were liquidated over the preceding 24 hours. Long positions accounted for about $525.4 million, while short positions accounted for $107.7 million. Longs made up approximately 83% of the total.
The data also showed $59.6 million in liquidations over the preceding 12 hours, $16.7 million over four hours and $2.1 million over one hour.
Traders open long positions when they expect prices to rise. If prices move against them and their collateral becomes insufficient, exchanges may automatically close their leveraged positions. The concentration of long liquidations indicates that traders positioned for gains were hit harder during the decline.
The 24-hour figure includes trading before the Senate vote, so it should not be read as the amount liquidated solely after the result. With the bill’s path forward uncertain, the market will watch for regulatory steps from the SEC and CFTC, as well as the Fed’s interest rate decision.
