Coinbase, Circle and Bullish jump as Clarity Act proponents express optimism about bill
Cryptocurrency-related stocks like Coinbase and Circle are seeing gains as investors shift capital from AI-focused assets. Market optimism is further fueled by legislative progress on the Digital Asset Market Clarity Act, which is expected to see a procedural vote in September.
Why it matters
The potential passage of the Clarity Act could provide much-needed regulatory certainty for the U.S. crypto industry, impacting market stability and institutional adoption.
Clear Street analyst Owen Lau pointed to two possible reasons for the moves, including that investors might be shifting money out of the AI trade and fresh optimism around the Digital Asset Market Clarity Act.
“I think it is driven by the reversal of AI trade, and optimism from Senators Tim Scott and Cynthia Lummis, as well as from White House representative Patrick Witt yesterday that they are still cautiously optimistic about the passage of the Clarity Act in September,” Lau told CoinDesk.
The reversal of the AI trade refers to investors taking profits in AI-related stocks after a strong run and moving some of that money into other parts of the market. COIN, BLSH and CRCL appear to be among the beneficiaries Wednesday, with bitcoin BTC $ 64,316.33 also gaining about 2% over the past 24 hours.
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