Saxo Bank: Coinbase Most Exposed to US CLARITY Act Developments
Crypto-linked stocks face selloff following failed Senate procedural vote on digital asset legislation
Quick Look
- Shares of Coinbase, Circle, and MicroStrategy declined after the US Senate failed to advance the CLARITY Act.
- Saxo Bank strategist Ruben Dalfovo notes that Coinbase faces the highest exposure to potential market-structure rules regarding registration and trading.
AI-generated summary
Why It Matters
The CLARITY Act failed a procedural vote in the US Senate, falling short of the 60 votes required to proceed. The bill faces a tight deadline due to the upcoming midterm elections and scheduled adjournment.
While Bitcoin and crypto-linked stocks fell sharply after the US Senate failed to advance the Digital Asset Market Clarity, or CLARITY, Act, Saxo Bank believes exchanges like Coinbase have more at stake than most because clearer rules could directly affect their trading businesses.
In a Wednesday note, Saxo strategist Ruben Dalfovo said Coinbase (COIN) is the most directly exposed to developments around CLARITY because market-structure rules could determine registration requirements, which assets can trade and who can participate in US crypto markets.
“Coinbase is most exposed to clearer market rules because trading and crypto participation directly affect its business,” Dalfovo wrote.
Stablecoin issuer Circle (CRCL) and Bitcoin (BTC) treasury company Strategy (MSTR) have different exposures, according to Dalfovo. Circle’s business is more closely tied to adoption of its USDC stablecoin and interest earned on its reserves, while Strategy’s performance is driven primarily by its BTC holdings and financing structure.
As Cointelegraph reported late Tuesday, shares of all three companies fell between 5% and 10% after the Senate procedural vote, despite differences in how the legislation could affect their businesses.
The selloff continued early Wednesday, with Coinbase, Circle and Strategy all down between 2% and 6%, according to Yahoo Finance data.
CLARITY faces narrowing path forward
The CLARITY Act failed a key procedural vote on Tuesday, with senators voting 49-50 against invoking cloture on a motion to proceed to the bill, well short of the 60 votes needed. The vote would have limited further debate and allowed the Senate to move toward considering the legislation on the floor.
Ethics provisions remained a major sticking point despite last-minute concessions aimed at addressing concerns over public officials’ crypto interests.
The setback significantly narrows the bill’s path forward this year. The Senate has a limited legislative calendar around the Nov. 3 midterm elections and is targeting Dec. 18 for adjournment, leaving lawmakers a relatively small window to revive the legislation before the current Congress ends.
What to Watch
AI outlook — possibilities, not facts
The CLARITY Act faces a narrow path to passage before the Dec. 18 adjournment.
Likely · Within weeks
Open Questions
- Will the CLARITY Act be revived before the current Congress ends?
- How will crypto exchanges adjust their operations without new federal guidance?
