Bitcoin, Coinbase, Circle Slip Despite Fresh Optimism Around CLARITY Act

• TD Cowen expects lawmakers to introduce a revised version of the bill this week that combines language from the Senate Banking and Agriculture committees.
• It expects that the revised legislation could hit the floor for a vote by the week of July 20. 
• President Donald Trump also urged the Senate on Monday to pass the CLARITY Act, calling for lawmakers to approve the bill in honor of Senator Lindsey Graham.

Bitcoin (BTC) continued to fall in midday trade on Monday, along with crypto-linked equities like Coinbase (COIN) and Circle (CRCL), despite optimism around the likelihood of the CLARITY Act being tabled in the Senate for discussion this week. 

In a note to investors cited by TheFly, TD Cowen said it expects to see an updated version of the Clarity Act bill that incorporates language from the Senate Banking and Agriculture committees as the Senate returns this week. It expects that the legislation could hit the floor as soon as the week of July 20. 

Senate Prepares Revised CLARITY Act

While TD Cowen said there is pressure to advance the legislation before the House begins its August recess, it cautioned that the path to passage has become more challenging.

The firm noted that the death of Senator Lindsey Graham (R-SC) removes an expected Republican "yes" vote, making it more difficult to secure the 60 votes needed to overcome procedural hurdles in the Senate.

President Donald Trump also weighed in on Monday, urging senators to pass the CLARITY Act "in honor of Senator Lindsey Graham, a big supporter," in a post on Truth Social.

Trump added that China and "many other countries" want "complete and total control" of cryptocurrency and artificial intelligence. "Don't let China win on either subject!!!" he wrote. 

Crypto Equities Turn Lower

Shares of Circle and Coinbase initially moved higher following Trump's comments supporting the legislation. However, those gains faded alongside a broader pullback in digital assets.

As of midday trade, CRCL’s stock fell 3.6%, and COIN’s stock edged 0.75% lower. Retail sentiment on Stocktwits around CRCL trended in ‘bullish’ territory over the past day, while sentiment around COIN remained in the ‘neutral’ zone. 

Bitcoin’s price fell as much as 2.5% in the last 24 hours to around $62,500. Retail sentiment around the apex cryptocurrency dropped to ‘bearish’ from ‘neutral’ territory over the past day. 

One retail trader on Stocktwits forecast that Bitcoin’s price could rally as high as $75,000 if the CLARITY Act passes.

Passage of the CLARITY Act still hinges on unresolved sticking points, including the final language of the Blockchain Regulatory Certainty Act (BRCA) provision and an ethics deal on crypto-related conflicts of interest. 

Graham's death and Senator Mitch McConnell's (R-KY) continued absence have left Republicans little room for error on the 60-vote threshold, with democratic senators like Elizabeth Warren (D-OK) lobbying against the legislation. 

Read also: Michael Saylor’s MSTR Didn't Buy A Single Bitcoin This Week – Here's What It Did Instead

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