Bitcoin and crypto-related stocks fell sharply on Tuesday after the Senate failed to advance the CLARITY Act.
- The vote was 50-49 in favor, falling short of 10 votes to reach the 60-vote threshold that was required to advance the legislation.
- Four Republican senators, Jerry Moran, Susan Collins, Josh Hawley and Thom Tillis, joined the Democrats in voting against the bill.
- Patrick Witt, the Executive Director of the President’s Council of Advisors for Digital Assets at the White House, said the vote was “a major disappointment” and “a failure of American leadership.”
Bitcoin (BTC) prices and cryptocurrency-related stocks declined sharply on Tuesday after The CLARITY Act, a key bill for regulation of digital assets, failed to advance in the Senate on Tuesday.
BTC prices fell more than 3% to $75,792.30 at the time of writing. Meanwhile, Coinbase Global Inc. (COIN), Robinhood Markets Inc. (HOOD), Strategy (MSTR), Strive Inc. (ASST) and BitMine Immersion Technologies Inc. (BMNR) all declined at close and continued to fall in the overnight session.
COIN stock fell more than 10% at close, while BMNR stock slumped more than 8%. HOOD stock declined more than 3%, while MSTR and ASST stocks fell more than 5% each.
The CLARITY Act Fails To Pass
The Senate blocked The CLARITY Act in a procedural vote, called the cloture, on Tuesday. The vote was 50-49 in favor, falling short of 10 votes to reach the 60-vote threshold that was required to advance the legislation.
Four Republican senators, Jerry Moran, Susan Collins, Josh Hawley and Thom Tillis, joined the Democrats in voting against the bill.
The CLARITY Act, formally introduced in the U.S. House of Representatives in May 2025, sought to establish a regulatory framework for digital assets to provide more legal certainty to the sector. The cryptocurrency industry spent hundreds of millions of dollars on efforts to advance the legislation, and had strongly backed the bill.
U.S. President Donald Trump also backed the bill, strongly urging Congress to pass the legislation as he pushed for more a crypto-friendly environment in the country, even calling himself a “crypto president.”
What Are Leaders Saying About The Failure To Pass The CLARITY Act?
Patrick Witt, the Executive Director of the President’s Council of Advisors for Digital Assets at the White House, said in a post on X, “There’s no sense in sugarcoating it: today’s vote was a major disappointment—and, I believe, a failure of American leadership. The full cost of today’s result may not be known for years to come, but this much is clear: it increases the risk that the standards that global financial markets adhere to in the future will be those of Brussels or Beijing, rather than Washington and New York.”
Meanwhile, Elissa Slotkin, Senator from Michigan, said she voted ‘No’ on the bill, saying that the ethics provisions in the bill were “simply too thin.” In a post on X, Slotkin elaborated: “President Trump, his children, and his Cabinet are making billions of dollars in the crypto space, in part from bilking everyday Americans out of their hard-earned money. I cannot in good conscience vote for any legislation that codifies that behavior from public officials. Not for President Trump or Secretary Lutnick today, nor for any Democrat who may take advantage of it in the future.”
The Senator also added that she believes there are strong, bipartisan provisions in the bill that could serve as foundations for future attempts to provide the crypto industry with the essential guardrails. “I believe that the U.S. should lead the world in cryptocurrency innovation, but we need to get it right. I remain open-minded to that work ahead,” she said.
Retail Stance On BTC, COIN, HOOD, MSTR, ASST, BMNR Stocks
On Stocktwits, retail sentiment around BTC improved from ‘extremely bearish’ to ‘bearish’ territory at the time of writing.
One user said, “$BTC Bitcoin didn’t need the clarity act from 2009 until the present, it doesn’t need it to the future.”
Another user said, “$BTC Bitcoin doesn’t require government adoption. Government increasingly requires a coherent Bitcoin policy. Bitcoin will target another block in roughly ten minutes regardless of what happened in the Senate today. The Difficulty Adjustment will occur regardless. The 21-million constraint remains regardless. Miners continue hashing. Nodes continue validating. UTXOs continue settling.”
Meanwhile, retail sentiment on Stocktwits around COIN, HOOD, MSTR, ASST stocks was also ‘bearish’ at the time of writing, while it was ‘neutral’ for BMNR stock.
One user said, “$COIN it was obvious clarity was never going to pass. this has been talked about for years and nothing changed. thinking trumpy was going to make things happen is obsurd. This stock will swing how it always has with bitcoin.”
Another user said, “$MSTR under 100 soon.” MSTR stock was trading at $128.59 at the time of writing.
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