Crypto stocks sink after Senate rejects Clarity Act

By CoinDesk

Crypto stocks were a sea of red Tuesday afternoon after the Senate failed to advance the Clarity Act, dealing a major blow to an industry that has spent years  — and hundreds of millions of dollars in campaign contributions — gunning for a comprehensive U.S. regulatory framework.

Coinbase (COIN) was down nearly 9% at $174.42, while stablecoin issuer Circle (CRCL) dropped 9.4% to $88.26. Galaxy Digital (GLXY) lost 8% and Gemini (GEMI) fell 7%.

The pain spread across the sector. Robinhood (HOOD) was down 3%, Bullish (BLSH) lost 5% and eToro (ETOR) fell 4%.

Among crypto miners, Riot Platforms (RIOT) dropped 5%, while MARA Holdings (MARA), CleanSpark (CLSK), IREN and Core Scientific (CORZ) were all down between roughly 3% and 4%.

The declines came after the Senate voted 49-50 on a procedural motion to advance the Digital Asset Market Clarity Act, well short of the 60 votes required.

The bill would have set rules for how different cryptocurrencies and blockchain projects are treated in the U.S., while giving the Commodity Futures Trading Commission (CFTC) greater authority over crypto spot markets.

Its failure means the industry will have to wait longer for the kind of legislation many companies have argued they need to make long-term plans in the U.S.

The Senate vote wasn't necessarily responsible for the entire selloff. Tuesday's trading was also shaped by investors cutting risk ahead of Wednesday's Federal Reserve decision which will likely end with a rate hike.

Bitcoin (BTC) is down about 3% over the past 24 hours, briefly dipping close to $75,000. Traditional stocks, including the Nasdaq and S&P 500 were in the red as well.

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