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.
A Ray of Hope
The CLARITY Act’s failed vote does not necessarily end its chances. The Senate could bring the bill back for another vote as early as September 17.
However, time is running short.
With limited Senate session days left before the October 2 deadline. The bill still has a path forward, but reaching the required 60 votes remains the main hurdle.
SEC & CFTC To Move Forward With Clarity ACT
With the CLARITY Act unlikely to move forward during the current congressional session, the focus is now shifting from Congress to U.S. regulators.
SEC and CFTC officials have also said they can still write crypto rules without the bill. The SEC is already working on its standalone “Regulation Crypto Assets” framework.
Meanwhile, the CFTC is developing rules for prediction markets and commodity spot markets.
Bitcoin Price Crashed Below $75K
As vote numbers were finalized on Capitol Hill, Bitcoin faced a sharp liquidation wave, falling more than 4.7% and breaking below the key $75,000 level, its lowest price since late August.
Over the past 24 hours, 120,217 traders were liquidated, with total liquidations reaching $771 million. Long positions accounted for nearly $568.5 million of the losses, showing how quickly the sell-off hit leveraged traders.
With the CLARITY Act failing to advance, the experts sugggest that bill is now likely dead for 2026, with no clear path for reconsideration before the midterm elections.
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