Bitcoin and Crypto Stocks Fall After Senate Blocks Clarity Act

Senate Blocks Clarity Act — Bitcoin‘s price and related equities fell sharply after the U.S. Senate blocked a procedural vote on the landmark Clarity Act on Tuesday.

The price of Bitcoin dropped as low as $75,038 before recovering slightly to $75,939, marking a 4% decline over the past day. The bill, which sought to establish a formal regulatory framework for digital assets, failed to advance with a vote of 49 for and 50 against.

Publicly traded companies tied to Bitcoin saw significant losses. Coinbase stock dropped more than 10%, while MicroStrategy, the largest corporate holder of Bitcoin, slid over 5%. Major bitcoin miners, including Marathon Digital, CleanSpark, and Core Scientific, also fell by at least 5%.

The legislation’s failure follows intense political debate. Senators Elizabeth Warren and Bernie Sanders criticized the bill, with Sanders alleging it was “corrupt” and benefited political interests. Pro-crypto Senator Cynthia Lummis accused Democrats of blocking the pro-consumer legislation.