CLARITY Act Stalls in Senate, Crypto Stocks Slump
The US Senate failed to advance the CLARITY Act on Tuesday, leading to a decline in crypto-linked stocks. Shares of Circle and Coinbase dropped around 10%, while Bitcoin treasury companies American Bitcoin fell about 8%. Other Bitcoin miners such as Riot Platforms, CleanSpark, Hut 8, and IREN also saw significant declines.
The CLARITY Act aimed to set rules for the US digital asset market and clarify which parts of the industry fall under the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC). However, the bill did not receive enough votes to advance, with fewer than 36 legislative days remaining before a new Congress is sworn in.
Coinbase CEO Brian Armstrong had been a strong advocate for the legislation, urging senators to support it ahead of Tuesday's vote. He warned that failing to pass the CLARITY Act would allow other countries to take the lead in crypto innovation. Following the failed vote, Strategy co-founder Michael Saylor chimed in with his own view on regulatory clarity, saying 'The only clarity you need is Bitcoin.'