Crypto traders betting on further gains lost about $571 million in the past 24 hours after the U.S. Senate blocked the CLARITY Act from advancing, unwinding a rally that had been driven by expectations of progress on the legislation.
REGULATION | The CLARITY Act Fails to Advance
Long positions accounted for the vast majority of liquidations, at roughly $571 million, compared with about $100 million in short positions, according to CoinGlass data. The long-liquidation tally was the highest since August 22 2026.
Bitcoin and ether traders took the biggest losses, with about $190 million of long positions liquidated in each.
XRP longs accounted for roughly $30 million, while
Solana longs lost about $22 million.
Markets tank following the failed #CLARITYAct senate vote.
ALL Democrats were opposed to moving the Act forward. https://t.co/2LXWMeGT7M pic.twitter.com/t4itH7Pw2V
— BitKE (@BitcoinKE) September 16, 2026
The liquidation wave highlights how heavily crypto markets had positioned for the legislation to advance. Bitcoin had climbed to nearly $80,000 earlier in the week from around $77,000 on Monday, before reversing as prospects for the Senate vote deteriorated.
The Senate vote ended 50-49 in favor of advancing the bill, short of the 60 votes required. The legislation had been expected to establish a federal framework for digital assets and clarify the roles of the Securities and Exchange Commission and Commodity Futures Trading Commission.
Bitcoin was trading around $75,700 after the sell-off, while crypto-related stocks also fell sharply. Coinbase and Circle each dropped about 9% on Tuesday, according to Reuters.
The failure of the bill does not eliminate the possibility of regulatory action. The SEC and CFTC can still pursue rules under their existing authority, shifting the near-term focus from Congress to U.S. regulators.
The size of the liquidation wave shows that the CLARITY Act had become a significant market-positioning event, not just a regulatory story. When the expected legislative catalyst failed, leveraged bullish bets became the transmission mechanism for the market reversal.
REGULATION | The Next Realistic Window May Not Open Until 2030 for the CLARITY Act, Says U.S Senator
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