Investing.com -- Needham analysts said Wednesday that the U.S. Senate's rejection of President Trump's crypto legislation presents a buying opportunity for exchange and brokerage stocks, despite sharp declines in the sector.

The Senate failed to advance the CLARITY Act on Tuesday after 49 senators voted against the motion to proceed, falling short of the 60 votes needed. The vote led to declines across crypto-linked stocks, with Coinbase Global falling 10.1%, Gemini down 9.5%, Robinhood Markets dropping 3.4%, and eToro declining 4.2%.

The bill would have given the Commodity Futures Trading Commission primary authority to regulate the digital assets industry. Democrats blocked the measure, citing concerns over ethics provisions related to Trump's crypto business interests, including his $1.4 billion crypto holdings.

Senate Republican leaders released an updated version of the legislation on Sunday night, adding measures to expand state attorneys general enforcement powers and provisions to limit crypto companies from offering rewards or interest to stablecoin users.

Needham analysts said the failed vote ends market structure legislative work in the Senate for 2026, with Congress set to be under split party control next year.

The firm maintained its view that the CLARITY Act would have had minimal impact on most crypto companies' underlying businesses. The analysts said they see no changes to their volume, revenue, or earnings estimates for exchanges and broker platforms including Coinbase, Robinhood, Gemini, and eToro.

The analysts noted that companies have already built dual SEC-CFTC compliance frameworks and have grown their crypto product lines under the existing regulatory regime. They added that the SEC and CFTC continue moving forward with their own frameworks to provide targeted clarity where needed.