Senate Fails to Advance Clarity Act, Crypto Stocks Plummet
Crypto stocks took a hit on Tuesday after the Senate failed to advance the Digital Asset Market Clarity Act, which would have provided much-needed regulatory clarity for the industry.
The bill's failure means companies will have to wait longer for legislation that many argue is essential for making long-term plans in the US. The industry has spent years and hundreds of millions of dollars lobbying for a comprehensive framework.
Coinbase, Circle, Galaxy Digital, Gemini, Robinhood, Bullish, eToro, Riot Platforms, MARA Holdings, CleanSpark, IREN, and Core Scientific were all impacted by the Senate's vote. Coinbase dropped nearly 9% to $174.42, while Circle fell 9.4% to $88.26.
The declines came despite investors cutting risk ahead of Wednesday's Federal Reserve decision, which is expected to include a rate hike. Bitcoin dipped briefly below $75,000 and traditional stocks were also in the red.