TLDR
- The U.S. Senate voted 49-50, failing to advance the Digital Asset Market Clarity Act
- Coinbase, Circle, and Galaxy Digital each fell more than 8% on Tuesday
- Bitcoin dropped nearly 4% in 24 hours, briefly dipping below $76,000
- ARK Invest sold over $61 million in crypto-related holdings the day before the vote
- Crypto miners including Riot Platforms and MARA Holdings also fell between 3% and 5%
The U.S. Senate failed to advance a key crypto regulation bill on Tuesday, sending crypto stocks sharply lower across the board.
Today, I voted no on the Clarity Act, legislation meant to regulate cryptocurrency in America.
The ethics provisions in this bill are simply too thin. President Trump, his children, and his Cabinet are making billions of dollars in the crypto space, in part from bilking everyday…
— Sen. Elissa Slotkin (@SenatorSlotkin) September 15, 2026
The Digital Asset Market Clarity Act needed 60 votes to move forward but received only 49. The bill would have set rules for how cryptocurrencies and blockchain projects are regulated in the U.S., and would have given the CFTC more authority over crypto spot markets.
Crypto Stocks Take a Hit
Coinbase dropped nearly 9% on the day, erasing a 9% gain from Monday. Circle fell over 11%, giving back most of a 7.5% rally from the prior session. Galaxy Digital lost 8% and Gemini fell 7%.
Other names in the sector also fell. Robinhood slipped 3%, Bullish dropped 5%, and eToro fell 4%.
Crypto miners were not spared either. Riot Platforms dropped 5%, while MARA Holdings, CleanSpark, IREN, and Core Scientific each fell between 3% and 4%.
The crypto space had rallied on Monday after an updated version of the Clarity Act text was released by the Senate. That optimism quickly reversed once the vote failed.
ARK Invest Cuts Crypto Exposure
One day before the Senate vote, Cathie Wood’s ARK Invest sold more than $61 million in crypto-related holdings.
ARK sold 36,628 shares of Coinbase from its ARK Innovation ETF, worth over $7 million. It also sold 18,280 shares of Bullish, valued at around $688,000. That followed a larger Bullish sale of 121,217 shares on the Friday before.
ARK trimmed its Circle position across two ETFs, selling 142,350 shares worth approximately $13.86 million.
The firm also cut its stake in its own ARK 21Shares Bitcoin ETF, selling around 1.53 million shares for over $40 million.
Bitcoin fell about 4% over 24 hours and briefly touched near $75,000. The cryptocurrency is down roughly 13% year to date and sits about 45% below its all-time high of $126,199.
The Senate vote was not the only pressure on markets Tuesday. Investors were also pulling back ahead of a Federal Reserve decision expected to include a rate hike. The Nasdaq and S&P 500 were also in the red.
The Clarity Act’s failure means crypto companies will have to wait longer for a clear regulatory framework in the U.S., something many firms say they need to make long-term business plans.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
