Bitcoin Leverage Wipeout Hits $571M After Senate Crypto Bill Fails

The U.S. Senate failed to advance the Clarity Act in a cloture vote on Wednesday, September 16, 2026, delivering a regulatory setback to the crypto industry, according to CNBC. The failed vote was followed by a $571 million leverage flush across crypto markets, 99Bitcoins reports.

The Clarity Act sought to establish a regulatory framework for digital assets. Its collapse marks a blow to an industry that had expected progress on market structure legislation, Al Jazeera reports.

The outcome followed internal pressure from within the Democratic caucus. Senator Kirsten Gillibrand privately urged fellow Democrats to move the crypto bill forward, according to Politico.

Coverage also highlighted the stakes for President Trump's crypto business, which CNN reports secured a key provision in the bill. The crypto industry had broadly viewed Trump as an ally on digital asset policy, CNN reported.

bitcoin

The combination of legislative failure and forced deleveraging left traders assessing how much speculative positioning remains in the market. The $571 million figure reflects positions closed as prices moved against leveraged traders, per 99Bitcoins.

Attention now turns to whether lawmakers attempt to revive the Clarity Act or pursue an alternative path, and whether crypto markets stabilize after the leverage flush.