Clarity Act Fades as Crypto Stocks Plummet
Crypto stocks took a hit on Friday after the Clarity Act's initial boost wore off. The shares of three publicly traded crypto-related companies dropped by an average of 11.0% following Tuesday, while Bitcoin declined 3.5%. Coinbase Global NASDAQ:COIN is set to report its second-quarter earnings next Thursday.
The Clarity Act, which grants the Commodity Futures Trading Commission authority over spot markets for digital commodities, had initially sent crypto stocks soaring on Tuesday. However, the measure's prospects remain uncertain due to ongoing ethics concerns in the Senate.
Coinbase CEO Brian Armstrong expressed support for the bill, stating that it boosts U.S. crypto leadership and consumer protections. Despite this, the legislation faces a challenge in gaining sufficient backing from Democrats.