Strategy Inc. (formerly known as MicroStrategy) shares MSTR fell 5% on Tuesday as Bitcoin declined after the US Senate failed to advance the Digital Asset Market Clarity Act.
The vote dealt a major setback to comprehensive cryptocurrency legislation that had been championed by Republicans and supported by major players in the digital asset industry.
The bill’s failure also weighed on other crypto-related stocks.
Coinbase shares fell 10% following the decision.
Clarity Act setback pressures crypto stocks
The Senate vote effectively put the Clarity Act on hold, with Congress expected to leave Washington this month ahead of the November midterm elections.
Republicans are seeking to retain control of both the House of Representatives and the Senate.
The legislation aimed to establish a regulatory framework for digital assets, which crypto companies argue would provide greater legal certainty and support wider industry growth.
The sector spent hundreds of millions of dollars lobbying and campaigning for the bill.
Treasury Secretary Scott Bessent said the legislation would give his department additional tools to address evasion.
Coinbase and the Blockchain Association also urged senators to advance the bill, warning that failure to do so could encourage crypto-related activity to move overseas.
However, opposition extended beyond concerns about ethics provisions.
Banking groups argued that the bill could leave loopholes involving stablecoin rewards, while the Indian Gaming Association raised concerns about tribal sovereignty.
Bitcoin decline weighs on Strategy shares
Strategy’s stock is closely tied to Bitcoin because the company holds a substantial amount of the cryptocurrency on its balance sheet.
As a result, changes in Bitcoin’s price can have a significant effect on the company’s shares.
Bitcoin’s decline following the Senate vote therefore added pressure to Strategy stock.
The company is often viewed as a leveraged proxy for Bitcoin, reflecting the impact of its cryptocurrency holdings on its market performance.
The stalled legislation could also have longer-term implications for Strategy and other digital asset companies.
Clearer market-structure rules are widely viewed as an important step towards greater institutional adoption of Bitcoin.
The setback comes as the crypto industry continues to seek a more defined legal framework in the US.
However, the bill’s future remains uncertain as lawmakers approach the end of the congressional session and the upcoming midterm elections.
Barclays raises Strategy price target to $160
Despite the latest pressure on Strategy shares, Barclays has reaffirmed its Buy rating on the company and raised its price target to $160.
Strategy was previously best known as an enterprise software company before shifting its focus towards Bitcoin.
Barclays has placed the company within the US payments and fintech sector, grouping it alongside major firms such as Visa and Mastercard.
The bank first initiated coverage of Strategy on July 8, 2026, with an Overweight rating and a $130 price target.
Following the company’s second-quarter results, Barclays lowered its target to $125, citing challenging conditions in the Bitcoin market while maintaining its Overweight rating.
The latest move represents a reversal, with Barclays lifting the target to $160.
The revised outlook comes despite renewed volatility in Bitcoin.
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