Bitcoin and Crypto Stocks Drop Following Senate Clarity Act Rejection

Bitcoin Magazine

Bitcoin, BTC-Related Stocks Tumble After Senate Blocks Clarity Act

Following the blockage of the long-awaited Clarity Act, the price of bitcoin fell alongside numerous cryptocurrency-related stocks.

The premier cryptocurrency recently traded at $75,939, reflecting a 4% decline over the trailing 24 hours, after dipping as low as $75,038 during Tuesday’s session.

Lawmakers defeated the landmark digital asset market structure bill in a procedural vote on Tuesday. Major companies within the digital asset ecosystem have long advocated for formal regulatory rules to govern the sector.

Bitcoin was not the only asset affected, as BTC-associated equities like Coinbase (NASDAQ: COIN) and Strategy (MSTR) also experienced declines.

Shares of the largest U.S. crypto exchange plummeted by over 10%, while Strategy, which serves as the largest corporate holder of bitcoin, dropped by more than 5%.

Major publicly traded bitcoin mining firms similarly faced losses, with MARA, CleanSpark, and Core Scientific all sliding by 5% or more over the past day.

Senators ultimately voted against advancing the legislation—which the digital asset industry has long requested—with 49 votes in favor and 50 against.

The legislation is designed to officially divide oversight between regulators, specifically clarifying which digital assets qualify as securities, commodities, or stablecoins.

Last month, President Donald Trump encouraged lawmakers to pass the measure, helping ignite a bitcoin rally. However, Republicans had warned for months that Democrats were intentionally stalling the initiative.

And stall it they did: prominent anti-crypto senator Elizabeth Warren cautioned Congress against supporting the legislation on Tuesday, harshly criticizing the bill as “a massive risk to families.”

Meanwhile, Senator Bernie Sanders posted on X to characterize the bill as “corrupt.”

Lawmakers objected to the legislation because they argued it unfairly enabled Trump to profit from the cryptocurrency sector. The president’s family has engaged in multiple crypto ventures since Trump assumed office, though the White House has consistently denied any wrongdoing.

“Crypto billionaires have spent nearly $300M on the midterm elections,” Sanders noted.

“Meanwhile, Trump and his family have pocketed more than $1.4B from crypto deals.”

On the other side of the aisle, pro-crypto senator Cynthia Lummis strongly condemned Democrats for halting the bill.

Writing on X, the Republican lawmaker stated: “The once-proud Democratic party is anti-consumer and pro-illicit finance, anti-ethics, anti-free enterprise, anti-worker, anti-livable wage jobs, and pro-socialism. The Democrats are now anti-American.”

What is the Clarity Act?

The Clarity Act is a digital asset market structure bill intended to divide oversight between regulators and establish whether specific digital assets are securities, commodities, or stablecoins.

How did the Senate vote on the Clarity Act?

The Senate blocked the bill in a procedural cloture vote, with 49 senators voting in favor and 50 voting against it.

How did crypto stocks react to the Senate vote?

Cryptocurrency stocks tumbled, with Coinbase shares dropping over 10%, Strategy sliding by over 5%, and bitcoin mining firms like MARA, CleanSpark, and Core Scientific falling 5% or more.

What was Bitcoin’s price after the vote?

Bitcoin’s price traded around $75,939—down 4% over a 24-hour period—after dropping as low as $75,038 on Tuesday.

spot_imgspot_img

Latest News

Best Bitcoin Blockchain Visualizers for Home and Office

Discover the best Bitcoin blockchain visualizers, explorers, and art-first interfaces for your home and office, featuring tools like Mempool.space, ExploreTimeChain.com, Symphony, and more.

CFTC Introduces Fresh Cryptocurrency Regulations

The U.S. Commodity Futures Trading Commission has introduced new regulatory guidelines allowing domestic cryptocurrency exchanges to voluntarily join a federal framework while major legislation remains stalled in Congress.

IMF Commends El Salvador While Urging Bitcoin Rollback

The International Monetary Fund approved a $139 million payout for El Salvador while urging the nation to scale back its state involvement in Bitcoin-related activities and halt further accumulation beyond donations.

Absa is First African Bank to Offer Bitcoin Custody: Report

South African financial institution Absa has become the continent's first bank to provide bitcoin custody solutions, catering initially to institutional clients with plans to add more digital assets later.

Bitcoin Tops $87,000 Following Weaker US Jobs Report

Bitcoin surpassed $87,000 during Friday morning trading, driven by steady exchange-traded fund activity and a weaker-than-expected U.S. jobs report indicating higher unemployment.
spot_imgspot_img

LEAVE A REPLY

Please enter your comment!
Please enter your name here