Cryptocurrency-linked stocks declined significantly on Tuesday following the Senate's failure to advance the CLARITY Act. Circle and Coinbase shares each dropped approximately 10%, while Bitcoin treasury companies and miners also experienced losses.
American Bitcoin fell around 8%, while Strategy and Strive each declined about 5%. Bitcoin miners including Riot Platforms, CleanSpark, Hut 8, and IREN saw declines ranging from nearly 4% to about 6%, according to market data.
The declines followed a Senate vote on a cloture motion that fell short of the 60 votes required to bring the legislation to the Senate floor. The CLARITY Act would establish rules for the US digital asset market and determine regulatory jurisdiction between the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC).
With fewer than 36 legislative days remaining before a new Congress is sworn in, the failed vote leaves limited time for the bill to advance this year.
Bitcoin briefly fell below $75,000 following the vote before recovering to around $76,000.
Industry Response
Coinbase CEO Brian Armstrong had been a prominent advocate for the CLARITY Act, previously stating the legislation had reached a stronger bipartisan position. Ahead of Tuesday's vote, Armstrong urged senators to support the bill, characterizing the choice as between promoting US crypto innovation or allowing other countries to advance in the sector.
Following the failed vote, Strategy co-founder Michael Saylor commented on regulatory prospects, stating that clarity on Bitcoin was the only necessary consideration.
