Crypto Stocks Plunge as Senate Fails to Advance Clarity Act

Crypto stocks plummeted on Tuesday after the U.S. Senate failed to move forward the CLARITY Act, a bill aimed at defining how digital-asset activity should be regulated.

The failure of the bill to advance, which required 60 votes to proceed, sent shockwaves through the crypto market, with shares tied to crypto assets experiencing significant declines.

Coinbase and Circle both dropped sharply, with Coinbase falling around 10% and Circle sliding roughly the same magnitude. Bitcoin treasury-focused firms were also hit hard, with American Bitcoin dropping approximately 8%, while Strategy and Strive each declined about 5%.

Riot Platforms fell approximately 6%, CleanSpark nearly 5%, Hut 8 fell more than 4%, and IREN dropped almost 4%. The failure of the CLARITY Act to advance has limited remaining time in the current legislative calendar, with fewer than 36 days before a new Congress begins after November's midterms.