Crypto longs worth $570 million wiped out as Clarity Act fails

Crypto futures platforms saw a wave of forced liquidations after the Clarity Act failed a Senate procedural vote, erasing roughly $571 million in bullish positions over a 24-hour span, according to CoinGlass. The sell-off represented the largest single-day long liquidation amount since August 22 and was concentrated in major tokens. Bitcoin and ether longs bore the brunt of the losses, with each suffering about $190 million in liquidations. Traders had been positioned for further upside after reports this week suggested progress on the bill, which briefly helped bitcoin climb toward $80,000 from roughly $77,000 earlier in the week. When reports indicated Democrats remained opposed, the rally began to reverse and leveraged long positions were aggressively closed. Short positions accounted for a far smaller portion of forced closures, totaling near $100 million. Other tokens also felt the impact: XRP saw about $30 million in long liquidations and Solana around $22 million. Exchanges automatically close futures trades when mark-to-market losses exhaust posted collateral, a mechanism that can intensify price swings during abrupt reversals. With the Senate vote failing to meet the 60-vote threshold—reported as a 49–50 procedural result—regulatory momentum has shifted toward the executive branch and independent agencies, including the Commodity Futures Trading Commission and the Securities and Exchange Commission. Despite the liquidations, bitcoin remained trading around $75,700 at the time of reporting, staying within its recent range, per CoinDesk data.