Crypto stocks fall after Senate rejects Clarity Act in 49-50 vote
Senate rejects Clarity Act in 49-50 vote
Crypto-related stocks fell sharply on Tuesday after the U.S. Senate failed to advance the Digital Asset Market Clarity Act, according to CoinDesk. The procedural vote was 49-50, well short of the 60 votes needed to move the bill forward.
The result is a setback for the crypto industry's long push for a federal market structure framework. The bill would have set rules for how different cryptocurrencies and blockchain projects are treated in the U.S. and given the Commodity Futures Trading Commission (CFTC) more authority over crypto spot markets, where digital assets are traded directly.
Crypto stocks fell across the board
- Coinbase was down nearly 9% at $174.42.
- Circle, the stablecoin issuer, fell 9.4% to $88.26.
- Galaxy Digital lost 8%, and Gemini fell 7%.
- Robinhood was down 3%, Bullish lost 5%, and eToro fell 4%.
- Riot Platforms dropped 5%, while MARA Holdings, CleanSpark, IREN and Core Scientific each fell roughly 3% to 4%.
- Bitcoin was down about 3% over the past 24 hours and briefly dipped close to $75,000.
What was also moving markets
The Senate vote was not necessarily responsible for the entire selloff, CoinDesk reported. Tuesday's trading was also shaped by investors cutting risk ahead of Wednesday's Federal Reserve decision, which the article says will likely end with a rate hike. Traditional U.S. stocks, including the Nasdaq and the S&P 500, were in the red as well.
Why it matters
The failed vote means the crypto industry will have to wait longer for legislation that many companies say they need to make long-term plans in the U.S. The industry has spent years and hundreds of millions of dollars in campaign contributions seeking a comprehensive U.S. regulatory framework.
The Fed decision is next
The next event named in the article is Wednesday's Federal Reserve decision, which CoinDesk said will likely end with a rate hike. CoinDesk did not describe a next step or timeline for the Clarity Act.
Price figures differ across the page
CoinDesk's article text and its market-data widgets show different figures for the same stocks. The text says Coinbase fell nearly 9% to $174.42, while the related-stock widget shows Coinbase at $172.11, down 10.10%. Circle is listed as down 9.4% to $88.26 in the text, but the widget shows $86.27, down 11.44%. Galaxy Digital is listed as down 8%, while the widget shows $22.29, down 7.63%.
