Clarity Act Delay Triggers Crypto Sell-Off as XRP Leads Losses

Woofun AI reports that the Senate’s decision to defer the Clarity Act vote until after the August break triggered immediate volatility across major digital assets. XRP emerged as the weakest performer, driving broader market sentiment downward alongside Bitcoin, Solana, Dogecoin, ether, BNB, and Hyperliquid’s HYPE.

Structurally, the legislation faces significant hurdles, requiring 60 votes to pass while lacking clear support for even the initial 50. Republican senators have publicly opposed the bill, while Democrats demand stricter rules to prevent President Donald Trump from profiting from crypto, noting his disclosed $1 billion in income from crypto ventures in 2025. Senate Majority Leader John Thune confirmed a vote will occur in September, when lawmakers return on Sept. 14 with three weeks to address a backlog including government funding and a Russia sanctions bill.

Per Woofun AI, price action reflected this uncertainty: Bitcoin held near $64,300, flat for the week, while XRP dropped over 2% to $1.02 and fell 5.5% over seven days. Solana declined over 1% to nearly $73 (down almost 2% weekly), Dogecoin slipped under 7 cents (down 1%), and ether remained flat at $1,897. BNB held at $591 (up 1% weekly), and HYPE eased under 1% to nearly $56 but led majors with a 1.3% weekly gain. Spot bitcoin funds absorbed $626 million between Aug. 3 and Aug. 5, defending the $63,000 to $64,000 zone but failing to breach resistance between $66,000 and $66,600.

The macroeconomic outlook remains pivotal, with the upcoming U.S. employment report and July inflation data set to influence direction. The Federal Reserve held rates at 3.50% to 3.75% in July, though three officials voted to raise them. Strong jobs or sticky inflation could reinforce tighter policy, weighing on Bitcoin as it struggles to break $66,000, potentially slipping back toward $63,000 if momentum fades.