$300M in Crypto Longs Liquidated in Minutes After CLARITY Act Fails
Crypto traders were hit with a brutal liquidation wave after the U.S. Senate failed to advance the CLARITY Act. Roughly $300 million in leveraged crypto long positions were reportedly liquidated in about 20 minutes, while Bitcoin dropped below $75,000. Ethereum, XRP and other major cryptocurrencies also moved sharply lower. The selloff followed the Senates 49–50 procedural vote, well short of the 60 votes required to advance the legislation. $300M Wiped Out in Minutes The speed of the decline was amplified by leverage. When Bitcoin started falling, exchanges automatically closed leveraged long positions that could no longer meet margin requirements. Those forced sales can push prices even lower, triggering additional liquidations. The result was a classic liquidation cascade: falling prices triggered forced selling, which created even more downward pressure. Why the CLARITY Act Mattered The CLARITY Act was designed to establish clearer federal rules for digital assets and determine how crypto markets and trading platforms should be regulated. Its failure removed a major regulatory catalyst that the industry had spent months anticipating. The reaction also builds on the broader CLARITY Act failure and Bitcoins drop below $75K, with traders now questioning how quickly comprehensive U.S. crypto legislation can return. Bitcoin Had Other Problems Washington wasnt the only source of pressure. Bitcoin was already struggling









