Bitcoin dropped about 3% on Tuesday after the U.S. Senate failed to advance the Clarity Act, a market structure bill the crypto industry had spent months lobbying for. The procedural cloture vote came up short 49-50, well below the 60 votes needed to move the bill forward, sending a wave of risk-off selling through digital assets and related equities.
The reaction was sharpest among crypto-linked stocks. Coinbase slid nearly 9% to $174.42, Circle dropped 9.4% to $88.26, and Galaxy Digital and Gemini both lost around 8% and 7% respectively. Robinhood, Bullish, and eToro also declined, while bitcoin miners including Riot Platforms, MARA Holdings, CleanSpark, and Core Scientific fell 3-5%.
The selloff compounded an already cautious market heading into Wednesday’s Federal Reserve rate decision, adding macro uncertainty to the regulatory disappointment. Traders had priced in modest odds of passage after a last-minute Republican draft failed to win over Senate Democrats. With the bill’s near-term path now unclear, analysts expect continued volatility in bitcoin and crypto equities as investors reassess the timeline for U.S. market structure legislation.
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