Analysts Call Crypto Selloff a Buying Opportunity After Clarity Act Fails

TLDR

• The U.S. Senate voted 49-50, blocking the Digital Asset Market Clarity Act from advancing
• Bitcoin fell nearly 4% in 24 hours, briefly dipping below $76,000
• Coinbase dropped nearly 9% on Tuesday, while Circle fell over 11%
• ARK Invest sold over $61 million in crypto-related holdings the day before the vote
• Analysts say the SEC and CFTC can still advance crypto regulation through agency rulemaking

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The U.S. Senate failed to advance a key crypto regulation bill on Tuesday, triggering a sharp selloff across crypto stocks and digital assets.

🚨BREAKING: The CLARITY Act has FAILED its Senate procedural vote, short of the 60 votes needed to advance.

The setback stalls the crypto market structure bill but leaves open the possibility of another vote. pic.twitter.com/gDGCYG3Hir

— Coin Bureau (@coinbureau) September 15, 2026

The Digital Asset Market Clarity Act needed 60 votes to move forward but received only 49. The bill would have given the CFTC more authority over crypto spot markets and set clearer rules for how blockchain projects are regulated in the U.S.

Crypto Stocks Take a Hit

Coinbase dropped nearly 9% on Tuesday, erasing a 9% gain from Monday. Circle fell over 11%, giving back most of a 7.5% rally from the prior session. Galaxy Digital lost 8% and Gemini fell 7%.

Coinbase Global, Inc., COIN

Robinhood slipped 3%, Bullish dropped 5%, and eToro fell 4%.

Crypto miners were also hit. Riot Platforms dropped 5%, while MARA Holdings, CleanSpark, IREN, and Core Scientific each fell between 3% and 4%.

Strategy, the largest corporate holder of Bitcoin, declined 5.4% on Tuesday.

Bitcoin fell about 4% over 24 hours and briefly touched near $75,000. Ethereum dropped 3.1% and XRP fell 8%. Bitcoin is down roughly 13% year to date and sits about 45% below its all-time high of $126,199.

The crypto space had rallied on Monday after an updated version of the bill was released. That optimism reversed quickly once the vote failed.

ARK Invest Cuts Crypto Exposure

One day before the Senate vote, Cathie Wood’s ARK Invest sold more than $61 million in crypto-related holdings.

ARK sold 36,628 shares of Coinbase from its ARK Innovation ETF, worth over $7 million. It also trimmed its Circle position across two ETFs, selling 142,350 shares worth approximately $13.86 million.

The firm also cut its stake in its own ARK 21Shares Bitcoin ETF, selling around 1.53 million shares for over $40 million.

The Senate vote was not the only pressure on markets Tuesday. Investors were also pulling back ahead of a Federal Reserve decision expected to include a rate hike. The Nasdaq and S&P 500 were also in the red.

Morgan Stanley analyst Felix Stratmann said the near-term odds of the bill passing have fallen sharply but that it is not dead. He noted the SEC and CFTC can still advance digital-asset regulation through agency rulemaking.

Needham analyst John Todaro said the failed vote essentially ends crypto market structure legislation for the year but called it “business as usual for crypto exchanges.” He added the selloff could be a buying opportunity for Coinbase and Robinhood.

The Clarity Act’s failure means crypto companies will have to wait longer for a clear regulatory framework in the U.S.