Senate Progresses on Clarity Act: Crypto Liquidations Tops $1B; What’s Next?

The United States Senate Committee on Agriculture has narrowly passed its portion of the Clarity Act. After a similar bill from the Senate Banking Committee was delayed earlier this month, this different version will be discussed on the floor of the house.

Moreover, the Senate will seek to harmonize its bill with the one passed by the House of Representatives mid last year. Interestingly, the bill advanced beyond the committee’s levels without any support from the Democrats. 

Furthermore, the bipartisan efforts were not present at today’s passage of the bill at the Senate level, whereby the result was 12- to 11 votes.

Crypto Market Weakens Amid Passage of Clarity Act

The crypto market, led by Bitcoin (BTC), recorded higher bearish volatility amid the passage of the Clarity Act at the committee level. According to market data from CoinMarketCap, the total crypto market cap dropped by nearly 6% to hover around $2.85 trillion at press time.

Bitcoin price has dropped over 5% in the past 24 hours to trade below $84k on Thursday, during the mid North American session. As such, 231,294 traders were liquidated around $1.03 billion, with over $917 million involving long traders.

What’s Next?

This passage of the Clarity Act at the committee level will bolster bullish outlook. Moreover, crypto investors are now expecting the bill to be expedited at the Senate floor in order to harmonize with the draft passed by the House of Representatives and send it to President Donald Trump to be signed into law.

As such, the crypto market is well positioned to rebound in the near term, catalyzed by institutional capital rotation from the precious metals to Bitcoin and altcoins.