Clarity Act Fallout Causes Bitcoin to Fall Below $75,000

Bitcoin price briefly dropped below $75,000 after the U.S. Senate failed to advance the CLARITY Act on Sept. 15. BTC reached an intraday low around $74,900 before recovering above $75,000, although it remained sharply lower over the latest 24-hour period. The decline extended a broader crypto selloff as traders reacted to the failed procedural vote and prepared for the Federal Reserve’s Sept. 16 policy decision.

The move also triggered heavy liquidations across leveraged crypto markets. CoinGlass data in the latest market snapshot showed approximately $674 million in positions liquidated over 24 hours, with long traders accounting for most of the losses. Bitcoin and Ethereum recorded the largest liquidation totals as both assets fell sharply.

Crypto Market Sees Broad Decline as Clarity Act Stalls in the Senate

The decline in Bitcoin’s value reflects the broader downtrend in the crypto market following the Clarity Act vote. The bill required 60 votes to pass the Senate’s cloture rule, but ended up with 49 to 50 votes, as most senators voted to reject it.

Opposition to the Clarity Act was bipartisan, with all Democrats present in the Senate voting against it while Republican Senators. Susan Collins, Josh Hawley, and Jerry Moran also joined.

Several of the Democrats who voted against the Clarity Act included  Senators Kirsten Gillibrand, Catherine Cortez Masto, Angela Alsobrooks, Cory Booker, and Mark Warner, all of whom were initially undecided.

Senator Thom Tillis voted yes, but later changed it to no, so that a motion to reconsider can be entered.

The failure of Tuesday’s vote appears to have come down to Democrat concerns about President Trump’s crypto interests.

While there, Republicans amended the Ethics provisions to address some concerns; reports claim that Democrats demanded more stringent provisions, which Republicans rejected.

It is now unclear what will happen next for the Clarity Act. With the midterm elections in November, time is limited, and there are concerns that most lawmakers will now be focused on reelection.

Already, the bill’s biggest proponent, Senator Cynthia Lummis, has criticized Senate Democrats for biting the no-vote, claiming they did not act in good faith. According to her, their no vote was a vote against American leadership and consumer protection.

Still, opinions are divided on whether the bill is dead or can be saved. While crypto stakeholders such as Ripple’s Brad Garlinghouse suggest it might be dead, some believe it could eventually pass.

Crypto Markets See Almost $700 Million Liquidation.

Meanwhile, the broad decline in the crypto market following the Clarity Act left many traders with losses from liquidations. According to Coinglass data, $674 milion was liquidated in the past 24 hours with 116,051 traders affected.

$579 million in long positions were liquidated, with the largest being a BTCUSDT position valued at $22.52 million on Binance. Short traders were also affected, but only $95.38 milion worth of positions were affected.

The Liquidation mostly affected Bitcoin and Ethereum as both accounted for $232 milion and $224 million, respectively. This was not surprising, with ETH also falling 6% today.

This article is for informational purposes only and does not constitute financial, investment or legal advice. Cryptocurrency investments involve risk, and political or monetary-policy developments can cause sharp market volatility. Readers should conduct their own research before making investment decisions.