Bitcoin Slumps Over 5% After Clarity Act Fails in US Senate

Bitcoin (BTC) dropped more than 5% and Ethereum (ETH) fell over 8% as the US Senate failed to advance the 'Clarity Act,' sparking a broad sell-off across the cryptocurrency market.

The Clarity Act, which required 60 votes for procedural passage, received 49 yes votes and 50 no votes on Thursday. Democrats cited insufficient ethics safeguards regarding former President Donald Trump's crypto business interests as a key concern.

Bitcoin dipped to $74,910 during the session before partially recovering to around $75,400 on Binance USDT market. Ethereum also saw its steepest decline since June. Both assets recorded their largest intraday drops since June.

Crypto industry leaders warned that the stalled legislation could prolong regulatory uncertainty, affecting corporate activity, capital allocation, and institutional investor entry into markets. Monarch Asset Management COO Ayesha Kiani noted the prolonged regulatory vacuum might hinder business operations and investment flows.

Related stocks also declined sharply: Coinbase fell 10%, Circle Internet Group dropped 11%, and major Bitcoin holding firm Strategea slid 5%.

In derivatives markets, leveraged positions worth approximately $300 million were liquidated in the final hour before voting, accelerating price declines. Wintermute OTC trader Jasper de Meer stated that legislative discussions on market structure for 2026 are effectively over, with the next realistic opportunity likely after the new Congress convenes.