CRCL, COIN Stocks Slip Premarket: Crypto Industry Makes Final Push For CLARITY Act Ahead Of Senate Vote Today

• Coinbase policy chief Faryar Shirzad said the bill satisfies all seven priorities Democrats outlined in 2025 and incorporates 126 requested changes. 
• Banking groups are pushing back on the bill's stablecoin yield provisions, arguing its circuit breaker would act only after a significant deposit flight had already occurred. 
• New York Attorney General Letitia James led a bipartisan group of 17 other attorneys general in a letter opposing the bill. 

Crypto industry leaders made a final push for the Digital Asset Market Clarity Act (CLARITY Act) ahead of the bill's first Senate floor vote on Tuesday, while banking groups kept up their fight over its stablecoin terms. The Senate votes at 2:15 pm ET on a motion to proceed. The bill still needs 60 votes to clear that step and open debate. As of now, Republicans hold 53 seats, so the outcome rests on Democrats. The New York Attorney General is calling on Congress to block the bill.

Coinbase Global Inc. (COIN) top policy executive Faryar Shirzad urged Senate Democrats to back the bill just hours before the crypto market structure bill faces its first Senate floor vote. Shirzad said the CLARITY Act meets every demand of Senate Democrats. He urged them to back the bill in the upcoming Senate vote. He said, “Every one of those seven pillars is addressed in the legislation before the Senate.” 

The Democrats’ Framework

The framework that Shirzad mentioned, which 12 Democratic senators released, set out what any crypto market structure bill should do. It called for rules for spot crypto trading and clarity on which regulator oversees which assets. It also sought to bring token issuers and trading platforms under regulation. The other pillars focused on stopping illicit finance, preventing corruption, and ensuring fair, effective regulation. The anti-corruption pillar aimed to keep officials and their families from profiting off corruption. 

Shirzad said the final text also includes 126 changes Democrats requested. He said the bill includes a role for state attorneys general and tougher illicit-finance rules. "Democratic negotiators played a major role in getting it here. They should vote for it tomorrow," he wrote.

Crypto journalist Eleanor Terrett posted on X on Monday that a group of Senate Democrats would meet in the evening to work on a counterproposal. Earlier she had reported that the GOP had filed its latest text, its “last, best and final” offer. 

In the later post, Terrett said industry sources expect the counterproposal to address most, if not all, of the Republicans' latest changes. 

Banks Slam Circuit Breaker

Journalist Eleanor Mueller reported that nearly every banking group had joined a letter criticizing the bill's stablecoin yield terms. The letter she shared lists the American Bankers Association and the Independent Community Bankers of America among the signatories. “A circuit breaker that activates only after substantial price flight has already occurred is not a safeguard at all,” the groups wrote in the letter. 

Administration Defends Stablecoin Terms

Treasury Secretary Scott Bessent said in an X post that the final draft gives the Treasury Secretary additional authority to respond if stablecoins begin hurting community banks. "If stablecoins cause harm to community banks, I will not hesitate to use these tools to ensure they remain fully protected," he wrote. 

Adding to that sentiment, White House crypto advisor Patrick Witt said in a post that bank deposits are rising, not falling. He added that banks lose these protections if the bill fails. Grayscale also shared a chart showing the odds of the bill passing this year surged to about 29%. That means markets are becoming more optimistic about the bill's chances.

In a letter to U.S. Senate Committee on Banking, Housing, and Urban Affairs Chair and Ranking Member Tim Scott (R-SC) and Senator Elizabeth Warren (D-MA), New York Attorney General Letitia James and the coalition warned that the CLARITY Act would threaten their ability to protect investors from rampant digital cryptocurrency fraud and scams. The coalition said that if the act passed, it could defend against the growing "epidemic of cryptocurrency fraud.”

CRCL, COIN: Retail Sentiment Is Bearish

Circle Internet Group (CRCL) and COIN are the stocks that are to benefit from the passage of this bill. CRCL shares fell 5.3% in premarket trading on Tuesday amid broader weakness in the tech industry. On Stocktwits, the retail sentiment around CRCL dipped to ‘bearish’ from ‘extremely bearish’ zones, while chatter remained at ‘low’ levels over the past 24 hours. 

COIN’s shares also fell 4.7% in premarket trading on Tuesday. On Stocktwits, the retail sentiment around COIN remained in the ‘bearish’ zone, while the chatter levels rose to ‘normal’ from ‘low’ levels in the last 24 hours.

Read also: The 200-Week Bitcoin Signal That Built 'Generational Wealth’ And Called Every Bottom Since 2015 Just Fired Again

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