Coinbase Stock Suffers Sharp Decline After CLARITY Act Vote Stalls
Coinbase stock plummeted around 9% after the U.S. Senate failed to advance the CLARITY Act in Tuesday's procedural vote.
The proposed bill, which aimed to provide a unified framework for exchanges and DeFi platforms, stalled with a 49-50 vote on cloture for the motion to proceed to H.R. 3633.
Crypto markets weakened alongside Coinbase stock: Bitcoin fell about 4% to $75,908, while Circle shares also dropped roughly 9%.
The setback comes after months of lobbying and negotiations, with the crypto industry seeking clearer rules for digital assets ahead of the upcoming U.S. midterm election period.
Coinbase CEO Brian Armstrong had publicly backed the CLARITY Act, praising it as a measure that would provide 'consumer protection and benefits for banks, law enforcement, and crypto companies.'