Crypto longs worth $570 million wiped out as Clarity Act fails
Bullish crypto futures bets worth millions have been liquidated in 24 hours. Bitcoin and ether longs have taken in the most losses.
Cryptocurrency stocks experienced a significant decline on Tuesday after the US Senate failed to advance the CLARITY Act. Circle and Coinbase shares dropped approximately 10%, while Bitcoin miners and treasury companies also suffered losses. Riot Platforms, CleanSpark, Hut 8, and IREN were among the affected companies, with declines of around 6%, 5%, 4%, and 4%, respectively.
Coinbase (COIN) shares fell by 9.9%. The CLARITY Act aimed to establish rules for the US digital asset market and determine the appropriate regulatory bodies, namely the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC). Despite efforts from industry advocates, the bill fell short of the required 60 votes in the Senate.
This setback leaves little time for the bill to advance in the current legislative session, with less than 36 days remaining before the new Congress is sworn in. Bitcoin briefly dipped below $75,000 following the vote, but subsequently recovered to around $76,000.
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- Crypto stocks slide after CLARITY Act fails to advance in Senate cointelegraph.com
- XRP sinks 10% as the Clarity Act fails and bitcoin slides toward $76,000 coindesk.com
- Crypto’s big bet fails as US senate sinks Clarity Act techcentral.co.za
