Märkte Insight: Die Kryptobranche verliert ihren wichtigsten Kurstreiber

The cryptocurrency sector is facing a major setback after Washington failed to reach a majority for the Clarity Act. Despite multiple attempts, the legislation aimed to clarify which cryptocurrencies are considered securities and which are commodities. This clarity was seen as crucial for legal certainty and continued growth of the industry in the US, as explained by Jennifer Lassiter from Standard Chartered in the "Handelsblatt Invest" podcast.

Market reactions were fierce, with Coinbase shares dropping 10% and the Stablecoin provider Circle losing 11%. Bitcoin briefly fell below $75,000, while XRP lost nearly 10%. The Trump bonus to the crypto world seemed to have fizzled out, turning from a booster into a brake. The consequences of this failure extend beyond a single day's stock drop.

Even during the campaign, Trump styled himself as the crypto president, profiting from various lucrative deals. However, many Democrats now hesitate to support the very sector that granted his administration billions in profits, just weeks before the congressional elections in early November. While Trump had already appointed crypto-friendly regulators to key agencies, experts say rules could be set in place that are partially covered by the Clarity Act.

However, these new rules could be overturned by a new administration much faster than a law. This has now slowed down further investments and put more pressure on prices. With the Clarity Act's failure, the cryptocurrency values no longer have their most important driver. Bitcoin is currently trading almost 40% below its all-time high and is in a deep bear market.

The euphoria surrounding artificial intelligence (AI) has also pulled a lot of money out of the crypto markets. A new law would have been a strong signal. Yet, the fact that Democrats have so clearly opposed the legislation poses a new risk to the industry. If they gain the majority in the US House of Representatives in November, they could launch investigations against crypto firms, causing further price pressure.

The chamber has particularly wide-reaching powers, including the ability to summon companies to committees, demand document disclosure, and conduct detailed investigations. For the sector, political pressure in Washington would significantly increase. According to Matt Hougan, head of investments at the asset manager Bitwise, the passage of the law could have attracted major institutional investors and sparked a rally.

Now, the market needs a new driver. Large institutional investors may become the next catalyst for a Bitcoin rally.