CLARITY Act Setback Sparks Market Turmoil as Crypto Exchanges Face Uncertainty

The Crypto Biz digest reports that the CLARITY Act, a key legislative priority for the crypto industry, hit a major roadblock in the Senate this week. The bill failed to advance due to a lack of votes, significantly narrowing its path forward before the November midterm elections.

Strategists believe that crypto exchanges like Coinbase may be particularly affected by the setback, as their trading businesses are directly exposed to US market-structure rules. Saxo Bank strategist Ruben Dalfovo noted that new regulations could determine registration requirements, tradable assets, and platform participants for companies like Coinbase.

Following the vote, shares of Coinbase, Circle, and Strategy plummeted between 5% and 10%, with Coinbase's stock continuing to fall the next day. Standard Chartered, meanwhile, is betting big on Arbitrum, predicting it will hit $10 by 2030 due to traditional finance firms moving assets onchain.

Bitmine is also making headlines, projecting $334 million in annual staking revenue from its $15.8 billion Ether treasury. Phemex's CEO Federico Variola expressed concerns about AI's impact on the industry, stating it has been a 'net negative' for crypto due to diverted liquidity and empowered attackers.