Crypto Assets Fall After Clarity Act Vote Fails, but Expert Sees ‘Not a Serious Shock’

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The Clarity Act was meant to create the first comprehensive U.S. legal framework for the crypto market. Among other things, it would have clearly divided oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), introduced registration requirements for market participants and tightened anti-money laundering rules. For now, the bill has failed in the U.S. Senate: a procedural vote drew 49 votes in favor and 50 against, well short of the 60 needed. The decisive factor was concern among Democratic senators about potential conflicts of interest and the crypto business dealings of President Donald Trump and his family. Ethics provisions added at the last minute were not enough to secure the necessary bipartisan support, making passage before the November midterm elections highly unlikely.

The crypto market responded with losses. According to CryptoRank, Bitcoin is currently trading at around $75,900 (down 1.4 percent), while Ethereum stands at roughly $2,400 (down 3 percent). XRP was hit harder, sliding about 8 percent to $1.29, and Solana lost around 3.5 percent to roughly $97. The total market capitalization of cryptocurrencies sits at about $2.6 trillion. More than $655 million worth of crypto positions were liquidated in the wake of the vote. Ahead of the ballot, Bitcoin had still been trading close to $80,000, CoinDesk reported.