CLARITY Act Failure Leaves 93rd Percentile Liquidations

Bitcoin liquidations reached the 93rd percentile of the past 90 days. This sharp move occurred immediately after the CLARITY Act failed to pass a key vote in Congress.

The legislative defeat leaves digital assets without a defined regulatory home. Industry leaders describe the outcome as a significant setback for formal U.S. oversight of the sector.

Banks urge targeted policy changes

Major banking associations issued a joint statement supporting a durable framework. They specifically encouraged lawmakers to adopt targeted changes to stablecoin yield policy.

These groups argue that Congress can achieve global leadership while protecting bank lending. They stand ready to work with stakeholders to finalize these important regulatory goals.

Founders face continued legal uncertainty

Trace Finance’s CEO noted that the industry remains in a legal gray zone. Regulators continue to use enforcement actions rather than clear rules to guide market behavior.

Institutional volumes stay on the sidelines due to this lack of clarity. Builders must operate on hope instead of established rules, which delays broader market participation.

Global momentum persists despite U.S. delay

Triple-A’s CEO stated that imperfect regulation is better than no regulation. He believes the broader trendline toward institutional adoption remains clear and unbroken.

Progress in the EU, UK, and Singapore continues to build global momentum. This international movement toward regulatory harmonization proceeds regardless of the U.S. legislative stall.