The US Senate voted 49-50 on September 15th against advancing a procedural motion for the Digital Asset Market Clarity Act, falling well short of the 60-vote threshold needed to move the legislation forward. This setback delivers a significant blow to the crypto industry, which has invested heavily in political lobbying over the years in pursuit of a comprehensive federal regulatory framework, triggering a broad sell-off in crypto-linked equities on the day.
Among the major crypto-focused stocks, Coinbase dropped nearly 9% to $174.42, while stablecoin issuer Circle fell 9.4% to $88.26. Galaxy Digital declined 8%, and Gemini slid 7%. The downturn rippled across the entire sector, with Robinhood down 3%, Bullish falling 5%, and eToro losing 4%. Crypto mining firms also felt the pain: Riot Platforms dropped 5%, while MARA Holdings, CleanSpark, IREN, and Core Scientific each posted losses ranging from roughly 3% to 4%.
The proposed bill was designed to establish regulatory guidelines for various cryptocurrencies and blockchain projects operating in the US, while also granting the Commodity Futures Trading Commission expanded oversight authority over the spot crypto market. With the bill failing to advance, the industry will now have to wait even longer for the legislative clarity that many companies say is essential for long-term planning within the United States.
However, the day's market declines were not solely attributable to the Senate vote. Investors were also paring risk exposure ahead of the Federal Reserve's interest rate decision on September 16th, with widespread expectations that the Fed would raise rates. Bitcoin slipped roughly 3% over the past 24 hours, at one point nearing the $75,000 level. Traditional equity benchmarks including the Nasdaq and the S&P 500 also closed lower on the session.
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