The failure of the Clarity Act, aimed at establishing a regulatory framework for virtual assets, has led to a significant drop in shares of fintech company Hectofinancial.
As of 10:52 a.m. on September 16, Hectofinancial's stock was trading at 18,650 won, down 3,340 won (15.18%) from the previous trading day, according to the Korea Exchange. Other companies in the sector, including KakaoPay (-11.37%), Danal (-10.9%), and NHN (-4.15%), also experienced declines.
The sharp drop in cryptocurrency-related stocks is attributed to the recent failure of the Clarity Act. This legislation was intended to create a federal regulatory framework for digital assets and clarify the jurisdiction of the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
The U.S. Senate attempted to advance the Clarity Act through a procedural vote but fell short, receiving 49 votes in favor and 50 against, failing to meet the 60 votes required for passage. All Democratic senators voted against the bill, and there were also defections within the Republican Party.
The stalled legislation has sent shockwaves through the virtual asset market. Bitcoin fell more than 4% during trading, dropping below $75,000, while U.S. cryptocurrency firms Coinbase and Circle also saw significant declines.
* This article has been translated by AI.
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