《Clear Act》Stumbles, Crypto Stock Pressured
The Senate vote effectively put the《Clear Act》on hold for the time being, and Congress is expected to leave Washington this month to make way for the November midterm elections.
Republicans are working to retain control of the House and the Senate.
The legislation is intended to establish a regulatory framework for digital assets. Crypto companies believe it would bring greater legal certainty and help the industry develop more broadly.
The industry has spent hundreds of millions of dollars lobbying and running campaign efforts to push the bill.
Treasury Secretary Scott Bessent said the legislation would give his department more tools to tackle tax evasion.
Coinbase and the Blockchain Association have also urged senators to back passage of the bill, warning that failure to do so could prompt crypto-related activity to move overseas.
However, opposition is not limited to concerns about the ethical provisions.
Banking industry groups believe the bill could leave loopholes around stablecoin rewards, while the India BoCai Association has raised concerns about tribal sovereignty issues.
What to watch next?
This “pause” doesn’t mean the bill is dead—it’s more like a “half-time break.” But in the short term, compliance premiums are squeezing out gains, and crypto-related stocks (Coinbase, MicroStrategy, miners, etc.) as well as major coins are down one strong bullish catalyst. Over the next few weeks, they will likely continue to trade in response to the Federal Reserve’s interest-rate signals.
The Senate vote effectively put the《Clear Act》on hold for the time being, and Congress is expected to leave Washington this month to make way for the November midterm elections.
Republicans are working to retain control of the House and the Senate.
The legislation is intended to establish a regulatory framework for digital assets. Crypto companies believe it would bring greater legal certainty and help the industry develop more broadly.
The industry has spent hundreds of millions of dollars lobbying and running campaign efforts to push the bill.
Treasury Secretary Scott Bessent said the legislation would give his department more tools to tackle tax evasion.
Coinbase and the Blockchain Association have also urged senators to back passage of the bill, warning that failure to do so could prompt crypto-related activity to move overseas.
However, opposition is not limited to concerns about the ethical provisions.
Banking industry groups believe the bill could leave loopholes around stablecoin rewards, while the India BoCai Association has raised concerns about tribal sovereignty issues.
What to watch next?
This “pause” doesn’t mean the bill is dead—it’s more like a “half-time break.” But in the short term, compliance premiums are squeezing out gains, and crypto-related stocks (Coinbase, MicroStrategy, miners, etc.) as well as major coins are down one strong bullish catalyst. Over the next few weeks, they will likely continue to trade in response to the Federal Reserve’s interest-rate signals.