Crypto stocks fall as Senate blocks landmark digital asset bill

Crypto-related stocks experienced a decline on Tuesday after the Senate failed to pass a digital asset market structure bill in a procedural vote. The legislation fell short of the required 60 votes to advance. Coinbase suffered the most significant drop, falling over 9%, while Circle Internet Group experienced a decline of more than 9.6%.

Strategy stocks decreased by approximately 5%, and Bitmine Immersion Technologies saw a loss of over 7%. The bill aimed to grant the Commodity Futures Trading Commission primary authority to regulate the digital assets industry. However, Democrats opposed the measure due to concerns over ethics provisions that sought to address President Donald Trump's crypto business interests.

Senate Republican leaders released an updated version of the Clarity Act, incorporating new measures to expand state attorneys general's authority to enforce ethics provisions and further limiting crypto companies from offering rewards or interest to stablecoin users. Democrats criticized the revised bill for falling short of addressing Trump's $1.4 billion crypto windfall and adding a circuit-breaker for the Treasury Department to prohibit crypto firms from offering rewards, interest, or yield to stablecoin users.

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