Crypto Stocks Soar on Clarity Act Optimism and Treasury Liquidity Boost
Crypto stocks rose sharply on Wednesday as optimism around the CLARITY Act and fresh Treasury liquidity news boosted the sector. Clear Street analyst Owen Lau attributed the surge to two main catalysts: investors rotating out of AI stocks into crypto-adjacent equities, and growing confidence in the passage of the CLARITY Act in September.
The U.S. Treasury announced it would double its long-term bond buyback operations starting on September 9, driving down yields and sending major cryptocurrencies higher, including Bitcoin (BTC), up 6%, Ethereum (ETH) up 10%, Solana (SOL) up 7%, and XRP up 8%. Crypto stocks followed suit, with Bitmine (BMNR) and Bullish (BLSH) rising by 13% each.
Passage of the CLARITY Act would establish clearer rules for digital assets and trading platforms in the US, reducing regulatory uncertainty for companies like Coinbase (COIN). Senate Banking Committee Chairman Senator Tim Scott expressed confidence in the bill's prospects, saying it has a 'really good shot' of moving forward in September.
The remaining sticking point is an ethics provision tied to President Trump's family interests. Senators Ruben Gallego and Thom Tillis have sent a proposal to the White House on this front, but the administration has yet to respond.