CLARITY Act Failure Sends Crypto Stocks into Free Fall

Crypto-linked stocks plummeted on Tuesday after the US Senate failed to advance the CLARITY Act, which aimed to set rules for the digital asset market and clarify regulatory oversight.

The setback leaves the bill with little time to advance this year, with fewer than 36 legislative days remaining before a new Congress is sworn in following November's midterm elections.

Coinbase (COIN) shares fell 9.9% on Tuesday, while Circle dropped about 10%. Bitcoin treasury companies American Bitcoin and Strategy declined around 8% and 5%, respectively, according to Yahoo Finance data.

Riot Platforms, CleanSpark, Hut 8, and IREN, all Bitcoin miners, also joined the selloff, with declines of 6%, nearly 5%, more than 4%, and almost 4%, respectively.