Crypto Stocks Surge Despite Senate's Clarity Act Rejection

The U.S. Senate's rejection of the Clarity Act on Tuesday has had an unexpected effect on crypto stocks, with Coinbase, Strategy, and Robinhood Markets all rising in early trading.

Despite the setback for the industry, which spent hundreds of millions of dollars lobbying for the bill's passage, investors seem to have priced in the defeat before the vote. Coinbase stock is up 1% to $174, while Strategy and Robinhood are also higher.

The split between crypto equities and Bitcoin, however, is more pronounced, with the iShares Bitcoin Trust ETF down 0.2% to $43.03. This may indicate that investors are adjusting their expectations for the token in light of the failed legislation.

Regulatory momentum may shift from Congress to the SEC and CFTC as lawmakers head into recess ahead of the midterms, which could impact Strategy and Robinhood's stock prices.