CLARITY Act setback shifts focus to Coinbase amid crypto policy debate

After more than two years of lobbying for clearer rules in Washington, crypto policy took another hit this week. The U.S. Senate failed to advance the CLARITY Act on Tuesday, missing the 60 votes required to move the bill to the floor—an outcome that compresses an already tight legislative window ahead of the Nov. 3 midterm elections. Strategists highlighted that the fallout may not be evenly distributed across the sector. In parallel, Wall Street research is making bold calls on layer-2 networks and staking yields, while industry executives are warning that artificial intelligence may be weakening crypto liquidity and increasing the security burden for smaller teams. Key takeaways The Senate’s procedural failure to advance the CLARITY Act narrows the bill’s remaining path this year as election-season timing tightens. Saxo strategist Ruben Dalfovo argues Coinbase is more directly exposed than some peers because market-structure rules could affect registration, tradable assets, and platform participation. Standard Chartered expects Arbitrum to outperform other large crypto networks through 2030, attributing part of that view to evolving economics from major builders. Bitmine’s treasury strategy targets staking revenue from a large Ether position, projecting annualized income based on current staking rates. Phemex’s CEO says AI is becoming a “net negative” for crypto by pulling liquidity away and enabling attackers, raising security costs. CLARITY Act stalls as Senate misses the procedural threshold The CLARITY Act’s failure to clear the Senate procedural vote is a significant setback for the industry’s push for regulatory clarity. According to Cointelegraph’s report on the vote outcome, the bill did not reach the 60-vote threshold needed to bring it to the floor for debate. Because the Senate calendar tightens ahead of the Nov. 3 midterm elections, the missed procedural step reduces the likelihood that the bill can be fully processed this year. For market participants, the immediate implication is that uncertainty around the timing and shape of potential federal rules may persist longer than many in crypto had hoped. Why Coinbase could feel the setback more than others Saxo Bank strategist Ruben Dalfovo argued in a note following the vote that Coinbase is among the most exposed names. As Cointelegraph reported in coverage of his view, Dalfovo said Coinbase’s trading business is directly tied to U.S. market-structure rules—meaning new requirements could influence registration obligations, the set of assets that can be traded, and who is permitted to participate on the platform. Dalfovo’s comparison matters for investors because it distinguishes between forms of exposure. Cointelegraph noted that he viewed some other crypto-linked companies as less directly affected by market-structure rules, with their key sensitivities tied to different variables—for example, Circle’s exposure connected to USDC adoption and reserve-related economics, and Strategy’s emphasis on its Bitcoin holdings and related access to financing.