Senate Blocks Crypto Regulation Bill, Stocks Plummet

The U.S. Senate voted down a bill aimed at regulating cryptocurrency in America, sending crypto stocks plummeting on Tuesday.

Coinbase and Circle each fell more than 8%, while Galaxy Digital lost 8% of its value. Robinhood slipped 3%, Bullish dropped 5%, and eToro fell 4%. Riot Platforms dropped 5%, and MARA Holdings, CleanSpark, IREN, and Core Scientific each fell between 3% and 4%.

The Digital Asset Market Clarity Act needed 60 votes to move forward but received only 49. The bill would have set rules for how cryptocurrencies and blockchain projects are regulated in the U.S., giving the CFTC more authority over crypto spot markets.

Crypto miners were not spared, with some of them falling between 3% and 5%. Bitcoin dropped nearly 4% in 24 hours, briefly dipping below $76,000. The cryptocurrency is down roughly 13% year to date and sits about 45% below its all-time high of $126,199.

ARK Invest sold over $61 million in crypto-related holdings the day before the vote. This included selling 36,628 shares of Coinbase from its ARK Innovation ETF, worth over $7 million. It also trimmed its Circle position across two ETFs, selling 142,350 shares worth approximately $13.86 million.