Crypto stocks declined sharply Tuesday following the Senate's failure to advance the Digital Asset Market Clarity Act. Coinbase fell nearly 9%, while Circle dropped 9.4% and Galaxy Digital lost 8%. The broader crypto sector experienced widespread losses, with Gemini down 7%, Robinhood down 3%, and several mining companies falling between 3% and 4%.
The Senate voted 49-50 on a procedural motion to advance the bill, falling short of the 60 votes required to proceed. The Digital Asset Market Clarity Act would have established rules for how different cryptocurrencies and blockchain projects are treated in the United States, while granting the Commodity Futures Trading Commission greater authority over crypto spot markets.
The bill's failure represents a setback for the crypto industry after years of effort and significant campaign spending to secure comprehensive federal regulation. Companies have argued that such legislation is necessary for long-term planning and operations in the U.S. market.
The selloff was also influenced by broader market conditions. Investors reduced risk exposure ahead of Wednesday's Federal Reserve decision, which was expected to result in a rate hike. Bitcoin declined about 3% over the previous 24 hours, and traditional stock indices including the Nasdaq and S&P 500 also fell.
