Senate to Vote on Digital Asset Market Clarity Act Amid Cryptocurrency Volatility

The US Senate is set to vote on the Digital Asset Market Clarity Act at 2:15 p.m. ET, requiring 60 votes to move forward. The legislation aims to provide a clearer asset-classification and registration path for trading platforms, potentially lowering costs associated with listing tokens.

Crypto-linked assets were falling ahead of the vote, with Circle Internet Group down 8% from Monday's close at $89.49, and Coinbase Global down 5.4% at $181.08. Bitcoin was near $76,410, down 2.3%, while ether dropped 3.8% to about $2,420.

The decline cannot be attributed solely to the bill, as the S&P 500 and Nasdaq Composite indexes were also down. However, Circle and Coinbase were underperforming these broader indexes, highlighting company-specific volatility.

Senate Democrats have expressed concerns over government ethics in the latest Republican language, with Senator Ruben Gallego stating that the deal was not final. Republicans hold 53 seats and need Democratic support to reach 60 votes.