Bitcoin Price Crashed Below $75K After CLARITY Act Failed to Pass in the Senate

Bitcoin price crashed 4.6% after the U.S. Senate’s highly anticipated procedural vote on the Digital Asset Market Clarity Act failed. The bill fell short of the 60 votes needed to overcome the procedural hurdle, triggering a sharp “sell-the-news” reaction across the crypto market. 

Bitcoin dropped below the $75,000 level, triggering $771 million in crypto liquidations.

Why the CLARITY Act Failed in the Senate

The CLARITY Act failed to secure enough Senate support despite major changes aimed at winning bipartisan backing. A last-minute substitute text included 126 bipartisan changes, but lawmakers still could not overcome big political and ideological differences.

Senate Republicans, led by Senator Cynthia Lummis, also secured President Donald Trump’s support for stricter blind-trust rules covering his digital asset investments. 

However, the changes failed to win over progressive Democrats.

Several Democrats who spent months negotiating the Clarity Act, including Gillibrand, Warner, Booker, Warnock, Gallego, Alsobrooks and Cortez Masto, voted NO.

Senator Elizabeth Warren fiercely attacked the revised bill on the Senate floor. Warren called the updated provisions a “weak fig leaf,” arguing that they did not go far enough to address broader conflict-of-interest concerns.