Crypto Stocks Plummet as CLARITY Act Fails Senate Vote

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 bill, which would have delineated which parts of the industry fall under the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC), fell short of the 60 votes required to advance.

Coinbase shares dropped by 9.9% on Tuesday, while Circle's stock declined around 10%. Bitcoin treasury companies American Bitcoin and Strategy also suffered losses, with falls of about 8% and 5%, respectively.

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