Crypto Longs Lose $571M After Senate Blocks CLARITY Act

Bullish crypto futures traders were hit hard over the past 24 hours after the CLARITY Act failed to advance in a U.S. Senate procedural vote. Roughly $571 million in long positions were liquidated during the period, the largest single-day total since Aug. 22, according to CoinGlass. Liquidations on the short side totaled about $100 million. Bitcoin and ether saw the steepest long-side losses, with around $190 million liquidated in each. XRP long liquidations were about $30 million, while Solana longs lost roughly $22 million. Heading into the vote, analysts had pointed to ether and DeFi tokens as likely outperformers versus bitcoin if the Senate backed the measure. Positioning had leaned bullish on expectations the bill would move forward. Optimism grew earlier in the week after reports said President Donald Trump was willing to make concessions on the legislation's ethics provisions, helping bitcoin climb to nearly $80,000 from about $77,000 on Monday. That move began to reverse roughly 24 hours ago as reports suggested Democrats were holding firm, and the Senate ultimately blocked the bill on a 49–50 procedural vote, failing to meet the 60-vote threshold. While the legislative path stalled, regulatory action could still continue through the executive branch and independent agencies. The CFTC and SEC may proceed with their own rulemaking. Liquidations occur when price moves against a leveraged futures position and mark-to-market losses erode collateral. If margin is insufficient, traders must add funds or the exchange closes the position, a dynamic that can intensify volatility. So far, the impact appears contained: bitcoin was trading around $75,700 at the time of writing, still within its recent range, according to CoinDesk data.