Cryptocurrency traders betting on further gains lost roughly $571 million over the past 24 hours after the United States Senate blocked the CLARITY Act from advancing, unwinding a rally that had been driven by expectations of progress on the legislation.

Long Positions Absorb Nearly All the Damage

Long positions accounted for the vast majority of the liquidations, at approximately $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, underscoring how much bullish leverage had built up ahead of the vote.

A liquidation occurs when an exchange forcibly closes a leveraged position because its margin can no longer absorb losses, which is why the steepest closures cluster on the side of the market that prices moved against.

Bitcoin and ether traders took the biggest losses, with about $190 million of long positions liquidated in each asset. XRP longs accounted for roughly $30 million, while Solana longs lost approximately $22 million.

Markets tank following the failed #CLARITYAct senate vote. ALL Democrats were opposed to moving the Act forward. pic.twitter.com/t4itH7Pw2V

— BitKE (@BitcoinKE) September 16, 2026

Senate Vote Falls Short of the 60-Vote Threshold

The scale of the liquidation wave highlighted 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 60-vote bar is the standard threshold for moving most legislation forward in the Senate, well above a simple majority, which is why closely watched bills can stall at this stage even when more senators vote in favor than against.

The legislation had been expected to establish a federal framework for digital assets and clarify the respective roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). How oversight of digital asset trading is divided between those two agencies determines which rules apply to U.S. platforms and market participants, which is why the bill's progress had been closely tracked across the industry.

Bitcoin Slides to $75,700 as Crypto Stocks Drop

Bitcoin was trading around $75,700 after the sell-off, roughly $4,300 below the weekly high near $80,000, while crypto-related stocks also fell sharply. Coinbase and Circle each dropped about 9% on Tuesday, according to Reuters.

Regulatory Action Still Possible Outside Congress

The failure of the bill does not eliminate the possibility of regulatory action. The SEC and the CFTC can still pursue rules under their existing authority, shifting the near-term focus from Congress to U.S. regulators.

A Market-Positioning Event, Not Just a Regulatory Story

The size 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.

BitKE separately reported that a U.S. senator has indicated the next realistic window for advancing the CLARITY Act may not open until 2030.