"CLARITY Act loses its clarity": liquidations, crypto crash, Senate vote

The CLARITY Act promised to bring clarity to crypto. Instead, the Senate delivered another dose of uncertainty—and crypto investors paid the price.The U.S. Senate on Tuesday failed to advance the landmark crypto market structure bill, with a 49–50 cloture vote falling well short of the 60 votes needed. The setback sent Bitcoin , Ethereum , XRP , and .But the biggest shock came from the liquidation wave.About $300M in crypto long positions were liquidated in just 20 minutes after the Clarity Act failed, according to the market data. Bitcoin's price crashed roughly $2,200 in that window to $74,900, while Ethereum fell below $2,400. Nearly $70B was reportedly erased from the crypto market.Moreover, on the past hours basis, CoinGlass data showed $5.56M in crypto liquidations, including $1.70M in Bitcoin, $834.17K in Ethereum, and $1.02M in XRP. Longs accounted for $2.79M of the latest hourly liquidations, versus $2.77M in shorts.Crypto stocks were not spared. Robinhood Markets , Strategy , Coinbase Global , Circle Internet Group , Hut 8 , and Bitmine Immersion Technologies all faced sharp declines following the vote.The political roadblock was just as important. Senator Elissa Slotkin said she voted no, citing weak ethics provisions, national security concerns, and insufficient CFTC oversight and staffing. She argued the bill could serve as a foundation for a better attempt.However, the failure does not necessarily end the regulatory push. The SEC and CFTC have said they will continue working on crypto rules even without CLARITY, while lawmakers could attempt another vote.For now, the message from the market is clear: no clarity, more volatility.Content provided by Seeking Alpha is intended for information purposes only, and that Seeking Alpha does not offer any personalist investment advice and is not a licensed securities dealer, broker, US investment adviser or investment bank.