Key insights
- Crypto-related stocks declined Tuesday after the U.S. Senate blocked a digital asset market structure bill in a procedural vote. The legislation, which aimed to grant the CFTC primary regulatory authority over the industry, failed to advance due to ethical concerns related to President Trump's crypto interests. Coinbase fell over 9%, and Strategy dropped roughly 5% following the news.
Investing.com -- Crypto-related stocks sold off Tuesday after the Senate blocked a digital asset market structure bill in a procedural vote. The legislation failed to reach the 60 votes needed to advance.
Coinbase declined more than 9%, while Circle Internet Group dropped over 9.6%. Strategy fell roughly 5%, and Bitmine Immersion Technologies lost more than 7%.
The bill would have given the Commodity Futures Trading Commission primary authority to regulate the digital assets industry. Democrats blocked the measure, citing concerns over ethics provisions designed to address President Donald Trump's crypto business interests.
Senate Republican leaders released an updated version of the Clarity Act late Sunday night. The changes included new measures to expand state attorneys general's ability to enforce ethics provisions. The proposal also added provisions to further limit crypto companies from offering rewards or interest to stablecoin users.
The bill included ethical guardrails for the president and other elected officials holding cryptocurrencies. Democrats said the provision did not go far enough, particularly in light of Trump's $1.4 billion crypto windfall.
The latest version added a circuit-breaker for the Treasury Department to prohibit crypto firms from offering rewards, interest or yield to stablecoin users. This issue has been at the center of a dispute between the digital asset industry and banks.
The defeat comes less than two months before the midterm elections in November.