Crypto stocks retreated Tuesday after the Senate failed to advance the Digital Asset Market Clarity Act, dealing a significant blow to an industry that has spent years and hundreds of millions in campaign contributions pursuing a federal regulatory framework.
The Senate voted 49-50 on a procedural motion to advance the bill, falling short of the 60 votes required to proceed. The Clarity Act would have established rules for how different cryptocurrencies and blockchain projects are treated under U.S. law while granting the Commodity Futures Trading Commission greater authority over crypto spot markets.
Coinbase fell nearly 9% to $174.42, stablecoin issuer Circle dropped 9.4% to $88.26, and Galaxy Digital lost 8%. Gemini declined 7%. Robinhood was down 3%, Bullish fell 5%, and eToro dropped 4%.
Among miners, Riot Platforms fell 5%, while MARA Holdings, CleanSpark, IREN, and Core Scientific each declined between roughly 3% and 4%.
The bill's failure extends uncertainty around U.S. crypto regulation. Companies in the sector have argued that comprehensive legislation is necessary to make long-term investment plans. Industry spending on lobbying and political contributions has been substantial, yet the vote reveals the difficulty of securing enough Senate support even for a procedural motion.
Tuesday's declines were not entirely driven by the legislative setback. Broader U.S. equities, including the Nasdaq and S&P 500, were also in the red as investors pared risk ahead of Wednesday's Federal Reserve decision, which is expected to deliver another interest-rate increase. Bitcoin fell roughly 3% over the past 24 hours, briefly dipping near $75,000 from about $76,878.
