XRP sinks 10% as the Clarity Act fails and bitcoin slides toward $76,000
Cryptocurrency prices, including XRP and Bitcoin, fell significantly after the 'Clarity Act,' a bill aimed at regulating cryptocurrency in the US, failed to pass a cloture vote in the Senate. The bill's failure was attributed to insufficient ethics provisions and concerns about regulatory agency staffing.
Why it matters
The failure of this legislation leaves the US crypto industry without the desired regulatory clarity from Congress, shifting attention to existing regulators like the SEC, and potentially impacting future investment and innovation in the crypto space.
Ether was next hardest hit at nearly 5% lower to about $2,410, with solana down 5% to just above $97 and dogecoin down nearly 5%. Zcash and hyperliquid's HYPE each fell close to 4%, and bitcoin slipped nearly 3% to just above $76,000. BNB and tron were the mildest at about 1% each.
The bill went down on a 49-50 cloture vote , the procedural step that needs 60 senators to move legislation to debate, with multiple Republicans voting no.
Negotiators had produced more than 600 pages of compromise text, and the provision that broke it was ethics language meant to stop senior government officials from keeping crypto business interests.
Senator Elissa Slotkin, a Michigan Democrat, said she voted no because "the ethics provisions in this bill are simply too thin," pointing to President Donald Trump, his children and his Cabinet earning money in crypto.
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