BMNR and MSTR stocks also traded lower, with crypto-linked equities dragged lower by the sell-off in the overall cryptocurrency market.
Bitcoin‘s price struggled to hold above $63,000, while Ethereum led losses among major cryptocurrencies.
Nearly $400 million in crypto positions were liquidated over the past 24 hours, with long traders accounting for most losses.
Ethereum (ETH) led losses among major cryptocurrencies on Friday morning after a Politico report said the Digital Asset Market Clarity Act (CLARITY) may lack Democratic support, making passage more difficult.
The market was also weighed down by the sell-off in AI stocks and ongoing geopolitical tensions stemming from the conflict between the U.S. and Iran.
Ethereum’s price dropped as much as 2.7% in the last 24 hours, trading at around $1,837. The leading altcoin is down nearly 40% this year and trades over 60% below its record high of almost $5,000 set in August last year.
Ethereum’s stock performance year-to-date. |
It was among the top trending tickers on Stocktwits at the time of writing. Retail sentiment around Ethereum on the platform trended fell to ‘bullish’ from ‘extremely bullish’ territory, accompanied by chatter at ‘high’ levels.
The largest digital asset treasury with Ethereum on its balance sheet, Tom Lee-backed Bitmine Immersion Technologies (BMNR) also traded in the red. BMNR’s stock fell over 2% in pre-market trade, with retail sentiment trending in the ‘neutral’ territory over the past day.
CLARITY Act Faces Political Uncertainty
According to Politico, Senator Bernie Moreno (R-OH) stated that the updated regulatory bill is likely to be released later on Friday following the meeting with President Donald Trump to discuss flexibility on the ethics clause. The provision restricts government officials at all levels from having holdings linked to the cryptocurrency market. It added that several Democrats said they wouldn’t support the version of the bill set for release Thursday because it lacks strong ethics provisions.
The CLARITY Act, which aims to divide oversight of digital assets between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), passed the House in July last year with bipartisan support. To clear the Senate, it needs 60 votes to beat a filibuster, and Republicans hold only 53 seats.
Some retail traders on the platform debated whether the passing of the CLARITY Act was really a “must” for the cryptocurrency market, which has been operating without any regulation for over a decade.
