Crypto stocks sink after Senate rejects Clarity Act

Crypto stocks were a sea of red Tuesday afternoon after the Senate failed to advance the Clarity Act, dealing a major blow to an industry that has spent years — and hundreds of millions of dollars in campaign contributions — gunning for a comprehensive U.S. regulatory framework.

Coinbase COIN$172.05·Market Closed was down nearly 9% at $174.42, while stablecoin issuer Circle CRCL$85.82·Market Closed dropped 9.4% to $88.26. Galaxy Digital GLXY$22.27·Market Closed lost 8% and Gemini (GEMI) fell 7%.

The pain spread across the sector. Robinhood HOOD$110.01·Market Closed was down 3%, Bullish BLSH$35.50·Market Closed lost 5% and eToro (ETOR) fell 4%.

Among crypto miners, Riot Platforms RIOT$19.73·Market Closed dropped 5%, while MARA Holdings MARA$11.24·Market Closed, CleanSpark CLSK$12.63·Market Closed, IREN and Core Scientific CORZ$16.07·Market Closed were all down between roughly 3% and 4%.

The declines came after the Senate voted 49-50 on a procedural motion to advance the Digital Asset Market Clarity Act, well short of the 60 votes required.

The bill would have set rules for how different cryptocurrencies and blockchain projects are treated in the U.S., while giving the Commodity Futures Trading Commission (CFTC) greater authority over crypto spot markets.