Crypto-linked stocks fall on delay to US coin bill

BitPlanet, BitMax plunge

Brokerages: "Rebound possible if talks resume"

Related stocks fell across the board after the US Congress postponed deliberations on the “Clarity Act,” which would set rules for cryptocurrency trading.

On the KOSDAQ on the 16th, BitPlanet and BitMax tumbled 6.37% and 7.77%, respectively. The two companies are “digital asset treasury” (DAT) operators that buy and hold bitcoin. Woori Technology Investment (-2.38%), which directly holds a stake in Dunamu, also declined. On the KOSPI, Hanwha Investment & Securities (-3.31%), which holds Dunamu, and Kakao (-2.05%), which holds it indirectly, also fell.

Fading expectations for crypto institutionalization triggered a sell-off. The US Senate Banking Committee on the previous day indefinitely postponed clause-by-clause review and a markup vote on amendments to the Clarity Act. That came after Coinbase CEO Brian Armstrong voiced public opposition.

Coinbase is the largest cryptocurrency exchange in the US and a key player with significant political lobbying clout. CEO Armstrong took issue with provisions related to tokenized stocks, decentralized finance (DeFi) and stablecoin rewards, warning that they “could lead to outcomes worse than the current regulatory environment.”

Still, as the bill has not been scrapped, there remains room for a rebound in related stocks if discussions resume. Hong Sung-wook, an analyst at NH Investment & Securities, said of the Clarity Act, “We expect it to pass in Q1–Q2 ahead of the US midterm elections,” adding, “Passage is also favorable for Coinbase, so (the opposition) is likely a temporary negotiating gesture.”

Reporter Park Ju-yeon grumpy_cat@hankyung.com