After the U.S. Senate failed to advance the CLARITY bill to the next stage, the crypto market saw a significant decline on Monday evening. The market had previously viewed this bill as an important advancement in the U.S. crypto regulatory framework. Following the setback in voting, risk appetite rapidly diminished, and major tokens generally fell in value.
The market tumbled rapidly after the voting setback.
Coinpedia cites market data stating that the total market value of global crypto assets fell to 2.70 trillion US dollars within 24 hours, a decrease of 2.9%. Bitcoin dropped to $76,047.75 and then briefly fell below $75,000 for the first time since August 20. Ethereum fell to $2,406.95, a 3.5% decline in 24 hours; XRP reported a price of $1.34, a decrease of 1.0%.
Within 20 minutes after the voting results were announced, over $300 million in long positions in cryptocurrencies were liquidated, indicating that short-term funds withdrew quickly.
- The total market value of cryptocurrencies has dropped to $2.70 trillion.
- Bitcoin once fell below $75,000
- More than $300 million in long positions were liquidated within 20 minutes.
Negotiations between the two parties broke down before the vote.
Reports indicate that on the eve of the vote, final negotiations between the two parties regarding the bill suddenly broke down. The aides of Senator Tim Scott withdrew from the final talks on ethical provisions held in Senator Thom Tillis's office, and subsequently, opposition votes emerged from both parties.
Several Democratic senators who had participated in months of negotiations, including Gillibrand, Warner, Booker, Warnock, Gallego, Alsobrooks, and Cortez Masto, ultimately voted against it. On the Republican side, Susan Collins, Josh Hawley, and Jerry Moran also did not support advancing the process.
This procedural motion required 60 votes in order to proceed to formal debate, but it ultimately did not pass.
Limited space for restart in 2026
The report suggests that it will be very difficult to make any progress with this bill within 2026, and the likelihood of revisiting it before the mid-term elections is low. In market forecasts, the probability of the CLARITY bill passing this year has dropped to 5%.
However, the market is also paying attention to the subsequent statements from regulatory authorities. The crypto community expects that the heads of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) in the United States may respectively indicate that they will continue to advance crypto regulation independently.
Amidst the general decline, a few tokens have shown relatively independent trends. Zcash has seen a decline of only 0.6%, while Official Trump token has risen by 16.2%, and the privacy coin Firo has increased by 18.4%.
