Cryptocurrencies slide as Clarity Act faces defeat in the Senate

Cryptocurrencies extended their market selloff on Tuesday after the Clarity Act was set to fail in the Senate, removing a key regulatory catalyst for the industry.

Bitcoin dropped as much as 5.2% to $75,010, while Ether fell by more than 8% alongside declines in smaller tokens and crypto-linked stocks.

The bill required Democratic votes to advance under the Senate's 60-vote rule, but stalled over ethics provisions demanded by Democrats to prevent Donald Trump from profiting from the industry.