🌟🌟🌟Crypto investors had a setback today as the Clarity Act failed to pass through the US Senate. Immediately a cold shiver ran through digital asset stocks with $Circle(CRCL.US)plunging over 11% overnight.
What should investors do?
Step Away from Crypto Stocks: Do not rush in to buy the dip on companies tied to regulatory approval. When Circle dropped 11% because the legal future just got clouded, cheap can get a whole lot cheaper before it finds a true bottom.
Park in the Safe Haven VIP Lounge: Parking your money in ultra short term vehicles like $iShares 0-3 Month Treasury Bond ETF(SGOV.US)or $Vanguard 0-3 Month Treasury Bill ETF(VBIL.US)lets you earn a safe, risk free yield while the political storm rages outside.
My Take
The failure of the Clarity Act isn't a sign that crypto is dying. It is just a sign that Washington is not quite ready for the Clarity Act. Circle is still an incredibly cash rich business but it has been locked back in a regulatory penalty box.
Let the politicians do the wrangling, our job is to simply make sure our wallet survives the performance.
