Bitcoin and crypto stocks slip as Clarity Act fails to advance in Senate (updated)
Updates at 3:12 PM ET with the procedural vote failing in the Senate; updates stock and crypto price movements. Updates at 3:50 PM with quotes from Algebra's Vladimir Tikhomirov.Bitcoin fell as much as 4.9% on Tuesday from Monday's high of nearly $80K as the Clarity Act failed to progress out of committee on Tuesday after the Democratic counteroffer to the Republican's final draft.The price of the largest cryptocurrency by market cap slid to $76.1K Tuesday afternoon, down 2.7% over the past 24 hours. The low of the day was $75.7K, compared with Monday's high-level mark of $79.6K.Ethereum , the second-largest digital token by market cap, dropped 4.5% to $2.40K at ~3:05 PM ET.The odds of the Clarity Act becoming law before Jan. 1, 2027, slid to 7.7% at ~3:45 PM ET from as high as 39% at 7:27 AM ET. Legislators have been squabbling over the stablecoin legislation for about a year.A procedural vote to advance the bill to the Senate floor for a full vote failed on Tuesday afternoon. Major sticking points included ethics over legislators and the president profiting from stablecoins and other digital assets and whether platforms should be allowed to pay interest on stablecoin holdings.While today's development was a setback, "this doesn't change the direction of the crypto market either, as prices are still too heavily dependent on rates, dollar liquidity, and macro conditions," said Vladimir Tikhomirov, founder of Theorem, an infrastructure platform for secondary markets for tokenized real-world assets (RWAs), and co-founder of Algebra, a DeFi infrastructure platform. "But the RWA market is still in an uncertain position. Put simply, there’s still nothing that could be a regulatory blueprint for how these assets can be traded, how liquidity is formed around them, and how investors can actually exit their positions."Cryptocurrencies and crypto stocks climbed on Monday after Republicans' final draft of the legislation included some ethics restrictions on conflicts of interest. It would also give the Treasury Department authority to intervene if deposit flight started to hurt community banks, according to media reports.The to be announced on Wednesday, may also have investors wary of risk assets, including crypto. The central bank's Federal Open Market Committee is widely expected to increase its policy rate by 25 basis points, its first hike since 2023.Crypto stocks slumping the most in Tuesday trading include Circle Internet -10%, Coinbase Global -9.5%, Gemini Space Station -7.3%, and Bakkt -6.9%. Crypto mining stocks also dipped: Riot Platforms -5.5%, CleanSpark -4.6%, Core Scientific -4.0%, Hut 8 -4.2%, and IREN -3.6%.Content provided by Seeking Alpha is intended for information purposes only, and that Seeking Alpha does not offer any personalist investment advice and is not a licensed securities dealer, broker, US investment adviser or investment bank.