The Clarity Act has hit a wall in the US Senate, and that pause is echoing across crypto related stocks that live or die on regulation headlines. This delay keeps the rulebook blurry, which can mean sharp moves when sentiment swings. For investors, that uncertainty can be risky or revealing. This article explains how the news connects to three stocks that may be feeling the pressure from this latest setback.
Bakkt (BKKT)
Overview: Bakkt is a digital asset infrastructure company that builds the behind the scenes plumbing for institutions, offering crypto trading, custody, and payments tools through its Markets, Agent, and Global platforms across the US and several international regions.
Operations: Bakkt currently generates all of its reported revenue, about $1.5b, from providing software solutions.
Market Cap: $341 million
Bakkt sits directly in the crosshairs of the Clarity Act delay because its core pitch is built around regulated crypto rails for big financial institutions. The stock screens as inexpensive on sales and is tied to themes such as Bitcoin adoption and stablecoin payments. At the same time, the company is still loss making, carries a very weak return on equity, and has less than a year of cash runway with a history of shareholder dilution. Management turnover and a young board add execution questions, while US regulatory progress has paused. For investors, Bakkt offers exposure to a complex story where regulation, funding pressure, and volatile sentiment could matter more than any headline about growth potential.
Bakkt’s story hinges on regulation, while its cash runway and losses raise harder questions. Before treating it as a cheap crypto infrastructure stock, review the Bakkt financial health report and see what might be missing from the headline story.
Screen for regulation sensitive crypto infrastructure like Bakkt
Bakkt and the other two stocks in this article all surfaced from a single Simply Wall St screener, which you can easily adapt to your own checklist. Use our flexible Screener to blend valuation, growth, quality, risk and balance sheet filters, or start with any of our curated Investing Ideas for ready made shortlists.
Block (XYZ)
Overview: Block is a US based fintech company that runs the Square point of sale and business services platform alongside the Cash App consumer ecosystem, offering payments, lending, banking tools, stock and Bitcoin trading, and a growing mix of AI driven software and crypto products.
Market Cap: $47.5 billion
Block sits in an awkward spot for investors. The company is pushing hard into Bitcoin, stablecoins and other digital asset features at the same time as the Clarity Act stalls in the Senate and regulatory risk rises again. Recent results show solid headline revenue and gross profit, yet net income of just $88.5 million in Q2 against $6.62 billion of revenue and a P/E multiple many times the sector average leaves little room for disappointment if crypto related growth slows or margins stay thin. Add in reliance on external funding, fraud related settlements for Cash App, insider selling and continuing earnings volatility, and Block appears to be a high expectation story where the potential downside from regulatory or credit shocks is clearly visible, while the upside case may require closer scrutiny.
Block’s thin net income against hefty revenue and a rich P/E multiple suggests the story may be more fragile than it looks. Before crypto momentum stalls, review the 3 key rewards and 3 important warning signs
