Crypto stocks fall 3-5% ahead of CLARITY Act cloture vote

Crypto equities sold off in pre-market trading on Tuesday as investors pulled back ahead of a decisive Senate cloture vote on the CLARITY Act. Circle (CRCL) led the decline, dropping more than 5.56%, while Strategy (MSTR), Coinbase (COIN), and Robinhood (HOOD) fell between 3% and 4%.

The sell-off erased nearly all of the gains these stocks posted on Monday, a day when Circle shares closed 7.53% higher at $97.42 on renewed hopes for Senate passage. According to Yahoo data, Circle was down approximately 5.6%, Coinbase about 4.7%, Strategy about 4.6%, and Robinhood nearly 3% on September 15.

Bitcoin price mirrored the equity weakness, slipping from 24-hour highs near $79,300 to trade below $77,000. The asset was last trading at $76,887, with volume declining after a recent rebound.

Macro headwinds compounded the legislative uncertainty. Brent crude oil prices rose above $108, and the US 10-Year Treasury yield climbed past 5%, reaching its highest level since 2007. The bond selloff intensified amid surging energy prices and mounting inflation risks. Markets also braced for a Federal Reserve rate hike this week, the first since 2023. JPMorgan and Goldman Sachs now expect a 25 basis point increase.

The US Senate is scheduled to vote at 2:15 p.m. ET on cloture for the motion to proceed to H.R. 3633. This procedural step is not a final vote to pass the CLARITY Act. Invoking cloture requires 60 votes; with Republicans holding 53 seats, the bill needs support from Democratic Senators.

Democratic opposition has centered on ethics provisions in the Republican draft. Senators Mark Warner and Elizabeth Warren stated that the language regarding ethics rules and state attorney general power is vague. They argued the text fails to adequately cover President Trump or his family's crypto interests. The rejection of this text by Democrats has been a primary driver of the recent stock tumble.

Supporters of the legislation have urged swift passage. Ripple CEO Brad Garlinghouse and Treasury Secretary Scott Bessent both advocated for moving the bill forward. Garlinghouse noted that the Senate decision will affect midterm election votes.

Failure to invoke cloture would likely sideline the CLARITY Act for the remainder of this Congress, given the narrow legislative window before midterms.