Crypto exchanges liquidate $571 million in long positions after Senate rejects CLARITY Act

On September 15, the U.S. Senate voted 49‑50 against cloture on the CLARITY Act (H.R. 3633), leaving the bill 11 votes short of the 60‑vote threshold needed to end debate. Within 24 hours, crypto exchanges forced the closure of roughly $571 million in bullish futures contracts.

Long liquidations by asset

• Bitcoin: about $190 million in long positions liquidated.
• Ether (ETH): about $190 million in long positions liquidated.
• XRP: roughly $30 million in long positions liquidated.
• Solana: approximately $22 million in long positions liquidated.

Market reaction

Bitcoin traded near $75,834, down roughly 2 % over the preceding 24 hours, while Ether hovered around $2,483, down about 1.5 %. Short‑position liquidations were far smaller, totaling around $100 million in the same period.

Why the liquidations occurred

Futures contracts are margin‑based; when mark‑to‑market losses reduce collateral below exchange requirements, positions are automatically closed. Traders had built sizable bullish exposure ahead of the Senate vote, anticipating that a successful cloture could boost prices.

Legislative context

The CLARITY Act sought to establish a U.S. market‑structure framework for digital assets, including potential commodity treatment for Ethereum if certain blockchain criteria were met. The cloture vote was procedural and did not represent a final decision on the bill’s passage.

Industry response

Coinbase CEO Brian Armstrong called the Senate outcome a disappointment, noting that the SEC and CFTC already possess authority to issue clear rules. Ongoing SEC rulemaking, such as the proposed Regulation Crypto Assets, continues independently of the CLARITY Act’s progress.