Crypto Stocks Fall After Clarity Bill Fails to Advance

Coinbase fell 10% after a landmark crypto bill became unlikely to pass.

A landmark crypto legislation, the Clarity Act, failed to advance in the Senate in a procedural vote Tuesday, sending prices of crypto shares down as the bill became unlikely to pass under the Trump administration.

The Clarity Act, a comprehensive crypto market structure bill, would set explicit rules for token issuance, trading and custody and make the Commodity Futures Trading Commission a primary regulator for the crypto industry. However, it failed on a vote of 49-50 after lawmakers remained unable to reach compromises over provisions to prevent conflicts of interest from President Trump’s family crypto businesses and add tighter restrictions for stablecoin yields, among other issues.

Coinbase fell 10% while shares of Circle plunged 11% on Tuesday. Crypto trade groups said they will continue to push for the bill while working with the Securities and Exchange Commission and the CFTC to create new rules for crypto. Bank trade groups said in a joint statement that “as lawmakers consider next steps, we encourage them to adopt targeted changes to stablecoin yield policy.”