Shares of crypto-linked companies experienced a sharp decline on Tuesday following the US Senate's failure to advance the CLARITY Act. The legislation, which aimed to establish regulatory rules for the digital asset market and define the roles of the CFTC and SEC, did not secure the necessary 60 votes to move forward.
Market reaction was immediate, with Coinbase and Circle shares dropping approximately 10%. Bitcoin treasury companies also faced downward pressure: American Bitcoin fell by about 8%, while Strategy and Strive each saw declines of roughly 5%. Mining firms were similarly affected, as Riot Platforms, CleanSpark, Hut 8, and IREN recorded losses between 4% and 6%.
The failed vote leaves limited time for the bill to progress, with fewer than 36 legislative days remaining before the new Congress convenes after the November midterm elections. Following the announcement, Bitcoin briefly dipped below $75 000 before recovering to approximately $76 000.
Coinbase CEO Brian Armstrong had previously advocated for the bill, suggesting in August that its failure would necessitate new regulatory rules from the CFTC and SEC. Following the vote, Strategy co-founder Michael Saylor commented on the situation via social media, stating that Bitcoin itself provides the necessary clarity.
