CLARITY Act stalls in Senate, putting Coinbase in the spotlight
CLARITY Act fails to advance in the Senate
The CLARITY Act, a major legislative priority for the crypto industry, failed to advance in the Senate on Tuesday. The bill fell short of the 60 votes needed to bring it to the floor for debate, significantly narrowing its path this year as the Senate calendar tightens ahead of the Nov. 3 midterm elections.
According to Saxo Bank strategist Ruben Dalfovo, Coinbase has more at stake than most from the stalled legislation. In a Wednesday note, Dalfovo said Coinbase's trading business is directly exposed to US market-structure rules, which could determine registration requirements, tradable assets, and who can participate on its platform.
Key points
- Coinbase, Circle, and Strategy shares fell between 5% and 10% after the vote and continued lower the following day.
- Standard Chartered projects Arbitrum (ARB) will hit $10 by 2030, a 70-fold increase from current prices around $0.14, which have gained 86% in the past month.
- Bitmine projects $334 million in annual staking revenue from its $15.8 billion crypto treasury, with over 5 million Ether now staked.
- Phemex CEO Federico Variola said AI has been a "net negative" for crypto, diverting liquidity and empowering attackers.
What the experts say
Standard Chartered's global head of digital assets research, Geoff Kendrick, said Arbitrum receives 10% of net protocol revenue from companies building on it. He noted that Robinhood Chain, launched in July, has materially changed Arbitrum's economics, with September revenue expected at $5 million, over five times the prior level. The bank's thesis relies on tokenized assets reaching $39 billion and forecasts of $4 trillion by 2028.
Bitmine added 27,180 ETH last week, bringing its holdings to 5.95 million ETH worth $15.4 billion, representing roughly 4.9% of Ether's circulating supply. More than 5.06 million ETH is now staked, generating an estimated $334 million in annualized revenue at current rates. Unlike Bitcoin treasury companies, Bitmine can earn recurring income from its crypto holdings through staking. Its stock has gained nearly 38% over the past month but remains down year to date, according to Yahoo Finance.
Speaking on Cointelegraph's Chain Reaction, Phemex CEO Federico Variola said AI has "empowered a lot of bad actors" and driven up cybersecurity costs for smaller teams. In July, attackers drained roughly $116 million in Bitcoin from more than 5,200 addresses tied to a Coldcard hardware wallet flaw widely believed to have been found through malicious AI use. Variola warned AI threats could make self-custody and DeFi less appealing to retail users, pushing the industry toward greater centralization. However, CertiK's Natalie Newson noted AI can also be "one of the biggest defenses."
What is confirmed
Confirmed facts from the sources include: the CLARity Act failed to advance in the Senate on Tuesday; Coinbase, Circle, and Strategy shares fell between 5% and 10% after the vote; Standard Chartered projects ARB at $10 by 2030; Bitmine holds 5.95 million ETH and stakes over 5.06 million ETH; and Phemex's CEO made the statements attributed to him on Chain Reaction.
What is still unclear
Adoption pace of Arbitrum remains uncertain, and the full impact of the CLARITY Act setback on Coinbase and other companies is not yet known.
Why this matters
These developments highlight the ongoing regulatory and technological challenges in the crypto industry, as well as the potential for new revenue streams and the risks posed by AI.
What happens next
No explicit next steps were provided in the sources, aside from the note that the CLARITY Act's path is now narrower this year.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.