Key facts
- The U.S. Senate failed to advance the Digital Asset Market Clarity Act on Tuesday.
- Bitcoin was trading around $75,800, down about 3.2% to 4% on the day.
- Coinbase and Circle Internet Group stocks fell about 9% and 4.7% respectively.
- The bill required 60 votes to advance to debate, but only received 49 in favor.
- Sen. Cynthia Lummis stated that the failure of the bill might be final for 2026.
- Sen. Elizabeth Warren opposed the bill, warning of a potential "crypto-fueled economic crash."
Bitcoin and crypto-related stocks declined on Tuesday after the U.S. Senate failed to advance comprehensive cryptocurrency legislation, a significant setback for digital asset companies and proponents of the bill. The Digital Asset Market Clarity Act did not secure the necessary 60 votes to proceed to debate.
Bitcoin was trading around $75,800, down approximately 3.2% to 4% on the day, after sliding from a session high near $77,200 as the vote progressed. Major crypto-related stocks also saw significant drops, with Coinbase and Circle Internet Group each falling about 9%. Other stocks like MicroStrategy and Robinhood also experienced declines.
The failure to advance the bill, which had been championed by Republicans for months, was attributed to a lack of support from Democrats. Senator Cynthia Lummis, a lead GOP negotiator, suggested that the outcome might be final for 2026, given the limited time left on the Senate calendar. Senator Elizabeth Warren voiced opposition, warning of potential economic instability if the bill were to pass.
Disagreements over the bill's language, including provisions related to stablecoin yields, conflict-of-interest rules concerning President Trump's crypto holdings, and liability protections for developers of non-custodial tools, contributed to the stalled progress. Despite a revised draft being released late Sunday, it was not enough to garner the required Democratic support.