Cryptocurrency markets extended losses on Sunday, with XRP trading below $1.30 as investors reacted to the stalling of the CLARITY Act in US Congress and broader risk aversion from the Federal Reserve's recent rate increase. Bitcoin and Ethereum also traded lower over the weekend.

The CLARITY Act would establish market-structure rules dividing oversight of digital assets between the Securities and Exchange Commission and the Commodity Futures Trading Commission. The bill failed to advance before lawmakers left for recess, disappointing the Blockchain Association and other industry groups who had lobbied for its passage, citing the need for regulatory certainty for exchanges and token issuers.

XRP weakened after hovering near $1.33 earlier in the week, according to market trackers. The token has been sensitive to Washington policy developments given Ripple Labs' long legal history with the SEC. Smaller-cap tokens and presale projects, including Remittix, reported continued investor interest despite the wider downturn.

The weekend slide compounded pressure from the Federal Reserve's rate hike, which sent global equities and risk assets lower. Digital-asset researchers noted that thin weekend trading volumes amplified price swings, with liquidations concentrated among leveraged long positions on major exchanges.

Market participants said attention would turn to whether Congress revives the bill after the recess and how spot crypto exchange-traded funds absorb outflows when US markets reopen on Monday.