$570M in crypto longs liquidated as Clarity Act fails

Long positions worth about $571 million were force-closed across crypto derivatives exchanges after the Clarity Act failed a 49-50 procedural vote in the U.S. Senate, with bitcoin and ether longs taking roughly $190 million of the damage each. The $571 million tally, per data tracker CoinGlass, was the largest single-session long liquidation since Aug. 22.

Bearish bets accounted for only about $100 million of the total, leaving roughly six dollars long for every dollar short caught in the cascade. XRP longs lost about $30 million and Solana longs about $22 million, lines that matched analysts' pre-vote calls that ether and DeFi tokens would outperform bitcoin if the bill cleared. Bitcoin sat inside its recent range at about $75,700 after the liquidations cleared, having pulled back from a Monday peak near $80,000 that followed an earlier climb from about $77,000.

The unwind started roughly 24 hours before as reports circulated that Senate Democrats were still holding the line. Those reports proved accurate: the bill fell one vote short of the 60 needed to advance, leaving regulatory momentum with the executive branch and the CFTC and SEC, both of which can still push their own rule making without Congress.

Liquidations, the forced closing of futures positions when a trader's collateral can no longer cover mark-to-market losses, can amplify volatility, though the damage so far looks contained. The report did not break out which exchanges accounted for the largest share of the $571 million, and a venue-level split would need to be checked against CoinGlass's dashboard directly.