Crypto Stocks Plunge 3-5% Ahead of CLARITY Act Senate Vote
Crypto stocks took a hit in pre-market trading on Tuesday, ahead of a crucial Senate vote on the CLARITY Act. Circle (CRCL) stock led the drop, falling more than 5.56%, while Strategy (MSTR), Coinbase (COIN), and Robinhood (HOOD) plunged nearly 3-4%. The decline came after investors pulled back following renewed hopes of the Senate passing the CLARITY Act.
The CLARITY Act has been a point of contention, with Democrats rejecting Republicans' crypto bill text due to ethics rules. Senators Mark Warner and Elizabeth Warren expressed concerns that the language around ethics provisions and state AG power is vague, and failed to adequately cover President Trump or his family's crypto interests.
Ripple CEO Brad Garlinghouse and Treasury Secretary Scott Bessent have urged passage of the bill, with Garlinghouse noting that the Senate decision will affect midterm election votes. Bitcoin price has also slipped from 24-hour highs near $79,300 to fall below $77,000 in the last few hours.