Coinbase faces greater fallout from CLARITY Act setback: Saxo

While Bitcoin and crypto-linked stocks fell sharply after the US Senate failed to advance the Digital Asset Market Clarity, or CLARITY, Act, Saxo Bank believes exchanges like Coinbase have more at stake than most because clearer rules could directly affect their trading businesses.

In a Wednesday note, Saxo strategist Ruben Dalfovo said Coinbase (COIN) is the most directly exposed to developments around CLARITY because market-structure rules could determine registration requirements, which assets can trade and who can participate in US crypto markets.

“Coinbase is most exposed to clearer market rules because trading and crypto participation directly affect its business,” Dalfovo wrote.

Stablecoin issuer Circle (CRCL) and Bitcoin (BTC) treasury company Strategy (MSTR) have different exposures, according to Dalfovo. Circle’s business is more closely tied to adoption of its USDC stablecoin and interest earned on its reserves, while Strategy’s performance is driven primarily by its BTC holdings and financing structure.

As Cointelegraph reported late Tuesday, shares of all three companies fell between 5% and 10% after the Senate procedural vote, despite differences in how the legislation could affect their businesses.