U.S. spot bitcoin ETFs recorded $450.33 million in outflows on Tuesday, their heaviest single-day exit since June, following the Senate's 49-50 vote rejecting the Clarity Act crypto legislation. Bitcoin declined 3.8% to $75,748 after the bill failed to reach the 60 votes needed to advance.
Cryptocurrency-related stocks rallied sharply after President Donald Trump urged Congress to pass the Digital Asset Market Clarity Act at a White House summit. Strategy (formerly MicroStrategy) rose 6.9% to $111.14, erasing a two-month decline, while broader crypto stocks surged 11%.
The Digital Asset Market Clarity Act faces likely failure to advance before the Senate's August recess, with the White House reviewing the latest draft but procedural deadlines passing. Analysts are split on whether missing the deadline would hurt or help crypto markets.
Circle Internet Group shares fell as much as 22% in their worst day ever after draft provisions in the CLARITY Act indicated potential limits on stablecoin yield distribution. The proposed legislation may restrict rewards on stablecoin balances, though analysts at Bernstein argue the selloff is overdone as restrictions target distributors rather than issuers.
