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Story: Circle and Coinbase Plunge 10% as Senate Rejects CLARITY Act Vote

By Julie Binoche

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What the CLARITY Act Was Supposed to Do. The bill had a pretty specific job: draw a clean line between what falls under the Commodity…

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Bitcoin Dips, Then Bounces — Barely. Bitcoin briefly fell below $75,000 after the result came in, per CoinGecko.

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What's Left for the Industry Now. The selloff Tuesday wasn't just about one bad vote. It's the accumulation of regulatory…

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Crypto stocks got hit hard Tuesday. Circle and Coinbase each dropped close to 10% after the US Senate failed to advance the CLARITY Act — a bill the industry had been counting on…

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It wasn't just Circle and Coinbase bleeding. Bitcoin treasury firms took a beating too. American Bitcoin fell around 8%. Strategy and Strive each slid about 5%.

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The Senate couldn't clear the cloture motion needed to bring the bill to the floor. No cloture, no floor vote.

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The bill had a pretty specific job: draw a clean line between what falls under the Commodity Futures Trading Commission and what belongs to the Securities and Exchange Commission.

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Coinbase CEO Brian Armstrong had been one of the loudest voices pushing for the bill. He said earlier this year that it had strong bipartisan support and seemed confident the…

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They voted no. Or rather, not enough of them voted yes.

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Bitcoin briefly fell below $75,000 after the result came in, per CoinGecko. It clawed back to around $76,000, but that's not exactly a ringing recovery.

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Related: CLARITY Act Senate Vote Puts 630-Page Crypto Bill on the Line

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And with fewer than 36 legislative days left before a new Congress is seated, the bill's chances of coming back around this year are pretty much gone. That's not a lot of runway.

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Armstrong had said before the vote that if the bill failed, the fallback scenario was new regulatory rules coming from the CFTC and SEC directly.

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Strategy co-founder Michael Saylor weighed in with a different take. His view: Bitcoin itself already provides the transparency that regulators are looking for.

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The selloff Tuesday wasn't just about one bad vote. It's the accumulation of regulatory uncertainty that keeps spooking investors every time a legislative deadline passes without…

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