The Senate’s failure to pass a cloture vote on the U.S. digital asset market structure bill, known as the CLARITY Act, triggered a sharp decline in cryptocurrency-related stocks.
On Tuesday, Circle’s shares plummeted 11.41% to close at 86.30 USD. Circle, a prominent stablecoin issuer, has been closely associated with the CLARITY Act.
Coinbase, the largest U.S. cryptocurrency exchange, saw its stock price tumble 10.1% to 172.11 USD at market close. The company has been viewed as a potential beneficiary of clearer crypto regulations, making it another key stock tied to the CLARITY Act.
Other crypto-related stocks also took a hit, with cryptocurrency exchange Bullish and MicroStrategy, the world’s largest corporate Bitcoin holder, seeing their shares fall by 5.74% and 5.36% respectively.
The failed vote has left industry insiders visibly frustrated.
Coinbase Chief Executive Officer (CEO) Brian Armstrong expressed his disappointment on X, formerly Twitter, stating that the CLARITY Act’s stall in the Senate today is disheartening. While there may be future opportunities for the bill, it can’t afford to wait on Congress any longer. It anticipates the SEC and CFTC will soon begin crafting clear rules under their existing authority. Regulatory clarity for digital assets is coming, one way or another.
Ripple CEO Brad Garlinghouse also weighed in on X, saying that it pulled out all the stops to support the CLARITY Act. This wasn’t just about Ripple or any single company – it was about cementing America’s position as a global leader in digital assets. Unfortunately, U.S. competitiveness has taken a back seat in this decision.
