Canaan Plunges 15% as Regulation Set to Hit Crypto Mining Sector

Today's been a relatively muted day in terms of volatility within the cryptocurrency sector. However, for crypto miners such as Canaan (NASDAQ: CAN), the same cannot be said.

As of 1 p.m. ET, Canaan plunged 15.7%, as investors priced regulatory uncertainty and higher interest rates into the valuations of crypto miners such as Canaan. This morning, investors had been closely monitoring the potential impacts of legislation reportedly being proposed by the European Union. Reportedly, an earlier draft of the Markets in Crypto-Assets (MiCA) framework contained a provision to limit the use of proof-of-work tokens in the EU. This vote had been scheduled for 8:45 a.m. ET today.

Despite recent news that this proposal was voted down by lawmakers, negative market momentum this afternoon pushed Canaan stock to make fresh lows in early afternoon trading.

Source Fool.com