XRP Plunges 10% After Senate Blocks CLARITY Act, Biggest Drop Among Major Cryptocurrencies

XRP fell nearly 10%, the steepest drop among major cryptocurrencies, after the U.S. Senate failed to advance the CLARITY Act.

CoinDesk reported that XRP traded at about $1.30 during Asian morning hours on September 16, down roughly 10%. Risk aversion spread across the broader crypto market after the bill failed to pass a procedural vote in the Senate.

Ether fell about 5% to $2,410, while Solana dropped 5% to just above $97. Dogecoin also slid nearly 5%. Zcash and Hyperliquid fell about 4% each, while Bitcoin was down about 3%.

The CLARITY Act won 49 votes in favor and 50 against in the Senate, falling short of the 60 needed to move to debate. Negotiators had prepared a compromise bill of more than 600 pages, but failed to narrow differences over ethics provisions that would restrict senior public officials' business interests in crypto.

Crypto-related stocks fell more sharply than tokens. Coinbase and Circle each dropped about 9%, while Galaxy Digital fell 8% and Gemini lost 7%. Bullish and Riot Platforms also declined 5% each.

With the bill's failure, market attention is shifting to regulators. The U.S. Securities and Exchange Commission is working on a regulatory framework for crypto assets and rules for tokenized securities.

The Federal Reserve's rate decision later on September 16 is also a key variable for markets. Traders are leaning toward a 0.25 percentage-point rate increase, keeping the focus on the prospect of continued volatility in crypto markets.