Coinbase Hit Hardest as US Crypto Law Stalls in Senate

A major US crypto law just hit a roadblock — and Coinbase may have the most to lose.

This week, the US Senate failed to move forward with the CLARITY Act (a proposed law that would set clear rules for how crypto is traded and regulated in the US). Because of this, Bitcoin and shares of several crypto companies dropped sharply.

According to Saxo Bank (a large Danish bank), one company stands out as being especially affected: Coinbase, one of the biggest crypto exchanges (a platform where people buy and sell cryptocurrencies).

Why Coinbase is most exposed: Saxo strategist Ruben Dalfovo explained that the CLARITY Act would decide things like:

• Which crypto assets are allowed to be traded
• Who is allowed to participate in US crypto markets
• What registration rules companies must follow

Since Coinbase makes money directly from trading, these rules affect its business the most.

Other companies are affected differently:

• Circle (CRCL) — issues USDC, a *stablecoin* (a type of crypto designed to always be worth $1). Its business depends more on how widely USDC is used.
• Strategy (MSTR) — a company that mainly holds large amounts of Bitcoin. Its value moves with Bitcoin's price.

The market reaction:

• All three companies' shares fell 5% to 10% right after the Senate vote.
• They dropped a further 2% to 6% the next morning.

What happened in the Senate: The bill failed a *procedural vote* (an early vote just to allow the bill to move to full debate). Senators voted 49 to 50 against it — far short of the 60 votes needed. A big sticking point was concern over ethics rules for public officials who hold crypto investments.

What's next: The timing is tricky. With midterm elections on Nov. 3 and the Senate planning to wrap up work by Dec. 18, lawmakers have only a small window left to try again this year.

Bottom line: Unclear rules create uncertainty, and that uncertainty hits trading-focused companies like Coinbase hardest.

This is an AI-generated summary. Read the original article at: https://cointelegraph.com/news/coinbase-clarity-act-exposure-saxo?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound