- The CLARITY Act faces an uncertain path in the Senate after Democrats raised concerns over weak ethics provisions.
- Ethereum dropped 2.7% to $1,837, leading losses among major cryptocurrencies amid a broader market sell-off.
- Nearly $400 million in crypto positions were liquidated over 24 hours, with long traders accounting for $335 million in losses.
- Bitcoin fell 1.7% and struggled to hold above $63,000, with analysts warning of further downside if support breaks.
- Crypto-linked equities BMNR and MSTR declined alongside the broader market downturn.
Ethereum led losses among major cryptocurrencies on Friday morning after a Politico report suggested the Digital Asset Market Clarity Act may lack sufficient Democratic support in the Senate. The broader cryptocurrency market fell 1.5% in the last 24 hours to approximately $2.23 billion, according to reports. The CLARITY Act, which aims to divide digital asset oversight between the SEC and CFTC, passed the House with bipartisan support last July but needs 60 votes to overcome a Senate filibuster, and Republicans hold only 53 seats. Several Democrats have stated they oppose the current version because it lacks strong ethics provisions restricting government officials from holding crypto-related assets. Senator Bernie Moreno indicated the updated bill would be released later Friday following discussions with President Trump on the ethics clause. Consequently, Ethereum dropped 2.7% to trade at $1,837, down nearly 40% this year and over 60% below its record high of nearly $5,000. Nearly $400 million in crypto positions were liquidated over the past 24 hours, with long traders accounting for $335 million of the losses. Meanwhile, Bitcoin fell 1.7% and struggled to maintain support above $63,000, with analyst Ted Pillows warning that a failure to hold above $62,500 may signal the end of the current bounce. Crypto-linked equities also declined, with Bitmine Immersion Technologies falling over 2% in pre-market trading and Strategy dropping as much as 2.1%. Dogecoin, Solana, and XRP each fell approximately 2%, while privacy-focused ZCash declined 2.4% to around $533. The sell-off was compounded by weakness in AI stocks and ongoing geopolitical tensions between the U.S. and Iran.
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