XRP Slumps 10% After Clarity Act Failure, Largest Drop Among Major Cryptos

The failure of the U.S. Senate's 'Clarity Act' has led to a nearly 10% drop in XRP, recording the steepest decline among major cryptocurrencies. According to CoinDesk on Monday (local time), XRP traded at around $1.30, down approximately 10%, during early Asian market hours.

The Clarity Act failed to secure the required 60 votes for procedural passage in the Senate, with a vote of 49-50. Despite an 800-page compromise draft addressing ethical provisions limiting government officials' involvement in crypto ventures, disagreements over these clauses prevented consensus.

Ethereum (ETH) fell about 5% to $2,410, while Solana (SOL) dropped 5% to just above $97. Dogecoin (DOGE) also declined nearly 5%, with Zcash (ZEC) and Hyperliquid (HYPE) falling around 4% each. Bitcoin (BTC) dipped about 3%.

Crypto-related stocks saw sharper declines: Coinbase and Circle fell roughly 9%, Galaxy Digital dropped 8%, and Gemini declined 7%. Bitly and Riot Platforms also fell approximately 5%.

With the Clarity Act's failure, market focus has shifted to regulatory bodies. The U.S. Securities and Exchange Commission (SEC) is advancing a framework for crypto regulation and tokenized securities rules.

The upcoming Federal Reserve interest rate decision on Tuesday is also being watched as a key market variable, with expectations of a 0.25% rate hike potentially increasing volatility in the cryptocurrency market.