Yesterday, Coinbase (NASDAQ:COIN) shares rallied. Today, the story is quite different, as shares of Coinbase are now down by over 10% following the disappointing vote on the CLARITY Act.
While the vote was always expected to be close, in the end, supporters couldn’t even break the 50-vote mark. Several Republicans voted against the legislation along with all Democrat senators.
Yesterday, Coinbase shares surpassed $190 on optimism; today, shares are trading in the low $170s amid sector pessimism.
Coinbase was not alone in its decline. Robinhood (NASDAQ:HOOD) was down by just under 4%. Gemini Space Station (NASDAQ:GEMI) was chasing Coinbase, down by over 9%.
Strategy (NASDAQ:MSTR), a Bitcoin proxy, also ended lower, down over 5%.
Stablecoin issuer Circle (NYSE:CRCL) tanked, with shares down almost 12%.
Digital asset supporters note that while the CLARITY Act failed, the GENIUS Act, payment stablecoin legislation, is law. And financial regulators are queued up to write their own rules without Congressional assistance.
There is also the issue of stablecoin yield. With no update from the CLARITY Act, the rules now default to the GENIUS Act, which allows stablecoin “rewards” – a loosely defined feature.
And the CLARITY Act can be reanimated in the coming weeks, or perhaps in the next Congress.
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