US Senate Blocks Clarity Act, Sending Crypto Stocks into Free Fall

Crypto-linked stocks plummeted on Tuesday after the US Senate failed to advance the CLARITY Act, reviving concerns over the timeline for comprehensive digital asset regulation.

The Senate vote had a major impact on those corporations that had business relations with digital asset regulation. Shares of Coinbase slumped by 9.9%, and Circle dropped by 11.5%. Other miners such as American Bitcoin, Strategy and Strive, Riot Platforms, CleanSpark, Hut 8, and IREN also moved lower.

Coinbase CEO Brian Armstrong had repeatedly urged lawmakers to approve the legislation, arguing that the US faced a choice between supporting domestic crypto innovation and allowing other jurisdictions to take the lead. He highlighted the industry's focus on regulatory certainty as companies expand their US operations.