Crypto exchanges saw about $571 million in long positions liquidated over a 24-hour period after the U.S. Senate failed to advance the CLARITY Act on Sept. 15. Bitcoin and Ether traders took the biggest hit, with roughly $190 million in long positions liquidated for each asset.
According to CoinGlass data cited by CoinDesk, long liquidations reached their highest level since Aug. 22. Short positions accounted for about $100 million during the same period. These numbers cover forced closures across exchanges tracked by CoinGlass and can change as the 24-hour window moves.
Bitcoin and Ether made up most of the long liquidations, with around $190 million wiped out in each. XRP long positions saw about $30 million in liquidations, while Solana long positions accounted for roughly $22 million.
Futures traders can be forced out of positions when market losses reduce their collateral below an exchange’s required margin level. Traders can add more funds to keep a position open, but exchanges automatically liquidate positions when margin requirements are no longer met.
Many traders had positioned themselves for further gains ahead of the Senate vote. Bitcoin had moved toward $80,000 earlier in the week, while Ether and several DeFi-related tokens were seen as possible beneficiaries if the legislation moved forward.
The Senate vote added pressure to the market. The official Senate roll call shows that the cloture motion on H.R. 3633 failed 49-50 on Sept. 15. The bill needed 60 votes to move ahead, leaving it 11 votes short of the required threshold.
Four Republican senators — Susan Collins, Josh Hawley, Jerry Moran and Thom Tillis — voted against cloture. Democratic Senator Chris Coons did not vote. Reuters reported that Tillis changed his vote to no as part of a procedural move that could allow him to seek reconsideration later.
Republican lawmakers had released revised bill language before the vote in an effort to address concerns raised during negotiations. However, the changes were not enough to secure the 60 votes needed.
The vote was only a procedural step and was not a final vote on whether the CLARITY Act would become law. Negotiations over issues such as ethics rules, stablecoin rewards, DeFi provisions and anti-money-laundering protections were still ongoing.
Bitcoin was trading around $75,834 on Sept. 16, down about 2% over 24 hours in the latest CoinGecko data. During that period, Bitcoin traded between roughly $75,038 and $77,703, with about $39.3 billion in reported trading volume.
Ether was around $2,483, down about 1.5% over the same period. It traded between approximately $2,479 and $2,608.
Bitcoin had climbed from around $77,000 on Monday to almost $80,000 as traders watched the Senate negotiations. The rally began to fade as expectations for the vote weakened. Reuters later reported that Bitcoin fell more than 5% at one point as the Senate outcome became clearer.
Shares of Coinbase and Circle also fell sharply during Tuesday’s trading session, with both dropping as much as 10%, according to Reuters.
Despite the setback in Congress, crypto regulation work can continue through federal agencies. Coinbase CEO Brian Armstrong said after the vote that the SEC and CFTC already have tools they can use to create clearer rules under existing authority.
The SEC had already been working on new crypto regulations before the Senate vote. On Aug. 18, the agency proposed Regulation Crypto Assets, which includes rules for certain investment contracts involving crypto assets.
The proposal includes exemptions for some offerings, including one covering up to $5 million over four years and another covering up to $75 million during a 12-month period. It also includes a conditional safe harbor that could allow a crypto asset to stop being treated as part of an investment contract if certain requirements are met.
The SEC and CFTC have also been working together on digital-asset regulation. Their efforts include areas such as product and trading venue definitions, reporting requirements, capital and margin rules, and the use of existing regulatory authority.
For now, the failed Senate vote has slowed the CLARITY Act process, but it does not end the broader effort to create clearer rules for the U.S. crypto market.
