Clarity Act Stalls as Bipartisan Support Collapses, BTC and XRP Drop

The US Senate's failure to advance the Clarity Act has triggered sharp declines in major cryptocurrencies. The bill, aimed at creating comprehensive market structure regulations for digital assets, failed a key procedural vote on Tuesday with a 49-50 tally.

Bitcoin (BTC) fell 3.7% to $76,000, XRP dropped over 7% to around $1.30, and Shiba Inu (SHIB) declined 3.7% to approximately $0.00000513. Ethereum and Solana also showed weakness as major cryptocurrencies faced selling pressure.

The vote revealed significant Democratic opposition, with several prominent senators including Mark Warner, Cory Booker, and Catherine Cortez Masto voting against the bill. They argued stronger provisions were needed on ethics, consumer protection, illicit finance, conflicts of interest, and market integrity. Senate Banking Committee member Lisa Blunt Rochester also opposed the legislation, citing unresolved concerns about investor protection and financial stability.

Republican defections further complicated the vote, with three GOP senators opposing the bill including Susan Collins from Maine, Josh Hawley from Missouri, and Jerry Moran from Kansas. The failed vote highlights ongoing political divisions over cryptocurrency regulation in the US, suggesting future legislative efforts will face similar challenges in building consensus on market structure reforms.