Why Are Crypto Stocks Dumping Today? Coinbase, Robinhood, Circle

The crypto stock price of Coinbase, Robinhood, and Circle are seeing some setbacks despite their recent momentum. This downward move was largely due to the recent setback for the CLARITY Act, after the Senate postponed the markup schedule.

Crypto Stock Price Declines Amid CLARITY Act Delay

The three major crypto firms have seen their gains wiped out after strong performances in the U.S stock market. The Coinbase stock price fell by more than 6 % at the close of the market on Thursday.

Also, the HOOD stock price saw investors taking profits. The HOOD stock saw losses of more than 7% before recovering in the closing of the market with a 2% gain.

Circle’s stock price has also dropped 9% according to Yahoo Finance, following the market trend.

This crypto stock price decline has been attributed to the delay of the CLARITY Act. The Senate Banking Committee has been forced to postpone the markup session, which had been scheduled for Thursday. However, it was met with resistance from the principal leaders of the industry.

Coinbase expressed their displeasure through the post made by the CEO of Coinbase, Brian Armstrong, stating that they are withdrawing their support from the bill. One of the reasons he especially stated is that the crypto bill would remove reward systems for stablecoins.

However, he held that it’s better not to have a bill than to have a bad bill. Nevertheless, he appears receptive to further talks with the committee.

It was also reported that Robinhood does not support the bill. However, the reasons for this was not shared. Circle however maintained support but its crypto stock price was still affected by the sentiment.

CLARITY Act Discussions Expected to Continue

However, the representatives of the cryptocurrency sector will continue talks with the U.S. Senate Democrats this Friday. The telephone conference will involve Democratic senators of both the U.S. Senate Banking Committee and the U.S. Senate Agriculture Committee.

The policy groups which act as the voice for the crypto industry in Washington, D.C., are also expected to attend this event. This is with the efforts to save the CLARITY Act from the current stumble it encountered. Meanwhile, as reported by CoinGape, experts have highlighted the crypto stock price investors should be watching as the process unfolds.

It is worth noting, in a recent post on X, U.S. Sen. Cynthia Lummis said that they have never been closer to signing this bill into law.

“Thanks to Chairman Scott’s leadership, we are closer than ever to giving the digital asset industry the clarity it deserves. Everyone is still at the negotiating table, & I look forward to partnering with him to deliver a bipartisan bill the industry, & America, can be proud of,” she said.

Despite the delay in the banking sector, the Senate Agriculture Committee has not altered its schedule. The committee will also proceed with a meeting of its own for the markup on January 27.