Crypto futures liquidations hit $571M as Senate blocks CLARITY Act

Crypto futures markets experienced a liquidation wave of approximately $571 million in long positions over the past 24 hours, the highest since early August, following the Senate’s rejection of the CLARITY Act. The bill, which aimed to streamline regulatory clarity for digital assets, failed to secure the 60-vote threshold required for procedural advancement, shifting regulatory momentum to the executive branch and independent agencies like the CFTC and SEC. Bitcoin and Ethereum long positions were hardest hit, with roughly $190 million each liquidated, according to CoinGlass data. XRP and Solana longs also suffered losses of about $30 million and $22 million, respectively, as traders reeled from the market’s abrupt shift after earlier optimism surrounding the bill’s prospects waned. The rally that preceded the liquidations had been driven by reports suggesting President Donald Trump was open to concessions on the bill’s ethics provisions, pushing Bitcoin up to nearly $80,000 from around $77,000. However, as Democratic lawmakers resisted further compromises, the Senate vote confirmed the bill’s failure, triggering a reversal in market sentiment. Bitcoin’s price remained within its recent trading range, trading around $75,700 as of the latest data, though liquidations underscored the heightened volatility in futures markets. The liquidations occurred when traders’ collateral fell short of covering losses, forcing exchanges to close positions to prevent further losses. While the immediate impact appears contained, the shift in regulatory dynamics—now centered on executive actions and regulatory agencies—could influence future market conditions and trading strategies.