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Crypto stocks fall after senate blocks bitcoin bill
Сryptocurrency
Shares of cryptocurrency companies tumbled on Tuesday after the Senate blocked a bill regarding the digital asset market structure during a procedural vote.
The measure failed to secure the 60 votes required to advance.
Coinbase shares fell more than 9%, while Circle Internet Group dropped over 9.6%. MicroStrategy lost about 5%, and Bitmine Immersion Technologies fell more than 7%.
The bill proposed granting the Commodity Futures Trading Commission (CFTC) primary regulatory authority over the digital asset industry. Democrats blocked the measure, citing insufficient ethical safeguards intended to limit the influence of President Donald Trump's crypto business interests.
Senate Republican leadership released an updated version of the Clarity Act late Sunday night. The revisions included new measures expanding the authority of state attorneys general regarding ethics enforcement. Additionally, provisions were added to further restrict crypto companies from offering rewards or interest to stablecoin users.
The bill included ethical restrictions for the president and other elected officials holding cryptocurrency. Democrats argued that these rules were not stringent enough—particularly given that Trump had generated $1.4 billion in revenue from cryptocurrencies.
The latest version of the bill introduced an emergency intervention mechanism allowing the Treasury Department to prohibit crypto firms from offering rewards, interest, or yields to stablecoin users. This issue lies at the heart of the conflict between the digital asset industry and the banking sector.
The bill's defeat occurred less than two months before the November midterm elections.