AAVE, ONDO, Uniswap Prices Reverse After CLARITY Act Vote as Traders Lock In Profits

The DeFi price reaction to the CLARITY Act vote turned into a perfect example of how crypto markets often behave around major events. The bill got approved in the Senate Banking Committee by a vote of 15 to 9 on May 14th, which prompted the traders to flock towards some of the significant DeFi tokens before the whole move collapsed quickly.

The Santiment analysis showed that the impact was almost consistent across AAVE, ONDO, ENA, and UNI. The prices rallied immediately following the vote but declined sharply within the next 24 hours as traders locked in their profits.

DeFi Tokens Reacted Fast to the Vote

The first reaction from the market looked bullish. The prices of AAVE, ONDO, ENA, and UNI grew by 1.9%, 4.6%, 3.6%, and 1.7% respectively during the voting hour of May 14 at 14:00 UTC as shown on Santiment’s chart.

However, the rally persisted for some time after the voting was done. AAVE rose up to $100.80, a figure representing an increase of 3.8% against the baseline rate. The ONDO price soared to $0.41 after growing 4.6% and ENA increased to almost $0.124, or by 5%.

Then the market began viewing the passing of the CLARITY Act as a significant bull factor. This law is welcomed for its effort to make a more precise jurisdictional framework for the SEC and CFTC as well as providing the users with additional protection based on the reward system of stablecoins. The positive mood was also caused by the news about White House plans to enact the legislation by July 4.

Read Also: AI Agent’s Clarity Act Portfolio: XRP, LINK, and 8 Other Tokens Ready for Regulation

Then the Entire Move Started Reversing

The problem for bulls is that the rally did not last long at all. Within 24 hours, every major DeFi token involved in the move had completely erased its gains and dropped between 3% and 7% below pre-vote levels.

We had a look at the chart shared by Santiment, and the reversal happened very quickly across the board. The ENA price posted one of the strongest moves higher initially, but it also sold off aggressively afterward. It’s now down 7% in the last 24 hours and trading around $0.11.

The ONDO price ended up suffering the deepest decline by the end of the session as it’s down 8% today, now below $0.36. The AAVE price and UNI price followed almost the exact same pattern as traders rushed to secure profits, although crash is less severe than with ENA and ONDO (down 3-5% today). This was basically a classic “buy the rumor, sell the news” setup playing out in real time.

Santiment also pointed out that traders had already been heavily positioned before the vote happened. Polymarket odds showed a 76% probability that the bill would pass before the Senate Banking Committee even confirmed the result.

The Bigger DeFi Story Has Not Changed Yet

Even though the short-term DeFi price reaction turned negative fast, many traders still believe the broader regulatory development matters for the sector over time.

The CLARITY Act is designed to create clearer rules around crypto regulation in the United States, especially regarding which assets fall under SEC oversight and which fall under the CFTC. DeFi projects have spent years operating under uncertain regulatory conditions, so any progress toward clearer rules is still being viewed as positive overall.

The legislation also attempts to stop banks from blocking stablecoin reward systems, another issue that has become increasingly important for DeFi platforms. That is why some analysts believe the sell-off may simply be a temporary cooldown after traders front-ran the event too aggressively.

For now, though, short-term momentum across the sector still looks weak. The AAVE price, ONDO price, ENA price, and UNI price all remain under pressure after the rapid post-vote reversal.

FAQs

What is the CLARITY Act

The CLARITY Act is a proposed U.S. crypto regulation bill designed to clarify how digital assets are regulated, especially regarding SEC and CFTC oversight.

Is the CLARITY Act officially law now

No. The bill has only passed the Senate Banking Committee stage and still needs to move through additional legislative steps before becoming law.