Clarity Act Failure Triggers Selloff Across Crypto Sector
A proposed bill in the US Senate aimed at providing clearer rules for regulating crypto and blockchain projects has stalled, sparking a sharp selloff across the sector.
The Digital Asset Market Clarity Act needed 60 votes to advance but received only 49. The setback means that crypto companies will have to wait longer for a clear regulatory framework in the US.
Crypto stocks took a hit, with Coinbase Global Inc. (COIN) dropping nearly 9% on Tuesday and Circle falling over 11%. Bitcoin fell about 4% over 24 hours and briefly touched near $75,000.
Morgan Stanley analyst Felix Stratmann noted that the SEC and CFTC can still advance digital-asset regulation through agency rulemaking. Needham analyst John Todaro called it 'business as usual for crypto exchanges' and said the selloff could be a buying opportunity for Coinbase and Robinhood.