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XRP fell nearly 10% to USD 1.30 during Asian trading Wednesday after the US Senate failed to advance the CLARITY Act. The token recorded the steepest decline among major cryptocurrencies.
The broader crypto market also weakened after the procedural defeat. Bitcoin slipped nearly 3% to just above USD 76,000, while Ether dropped almost 5% to around USD 2,410.
Solana declined 5% to just above USD 97, while dogecoin lost nearly 5%. Zcash and Hyperliquid's HYPE each fell close to 4%. Meanwhile, BNB and Tron recorded smaller declines of about 1% each. The moves followed a broad reduction in risk exposure across major digital assets.
XRP drew particular attention because of its connection with banking-focused digital asset activity and the RLUSD stablecoin. The CLARITY Act sought clearer rules covering digital assets and their use within traditional finance.
What happens next for XRP as regulatory attention shifts from Congress toward federal agencies?
The Senate failed to advance the bill in a 49-50 cloture vote, according to CoinDesk. The measure needed 60 votes to proceed to debate, and several Republicans joined the opposition. Negotiators had prepared more than 600 pages of compromise language. Still, disputes over ethics provisions became a central obstacle before the vote.
Michigan Democratic Senator Elissa Slotkin said the ethics safeguards were ‘simply too thin.’ She also raised concerns about CFTC staffing, money laundering controls, and terrorist financing provisions.
Slotkin also pointed to crypto-related financial interests involving President Donald Trump, his children, and Cabinet members. Her remarks formed part of the broader Democratic objections to the legislation.
Also Read: XRP Eyes Breakout as CLARITY Act Vote Meets Record Ledger Activity
Crypto-related equities recorded even steeper losses than major tokens. Coinbase fell nearly 9% to USD 174.42, while Circle dropped more than 9% to USD 88.26. Galaxy Digital declined 8%, Gemini lost 7%, and Bullish and Riot Platforms each fell 5%. Robinhood, MARA Holdings, CleanSpark, IREN, and Core Scientific dropped between 3% and 4%.
Attention now shifts toward federal regulators. The Securities and Exchange Commission continues work on its proposed Reg Crypto framework and rules covering tokenized securities. At the same time, markets await the Federal Reserve's rate decision Wednesday. Traders placed the probability of a rate increase near 93%, while the 10-year Treasury yield hovered around 5%.
