๐Ÿšจ FED RAISES RATES AND CLARITY ACT IS BLOCKED โ€” CRYPTO ENTERS A PRESSURE SCENARIO

The week delivered exactly the kind of combination that increases volatility in the crypto market:

๐Ÿฆ FED +25 BPS

The Federal Reserve raised interest rates to 3.75%โ€“4.00%, in a unanimous decision of 12โ€“0.

This was the first increase since 2023.

And the new dot plot points to a median rate of 4.1% by the end of 2026, indicating that FOMC members, on average, still expect room for one more hike.

This tends to keep pressure on risk assets, especially those most sensitive to liquidity.

โš ๏ธ WHAT ABOUT THE CLARITY ACT?

The U.S. Senate rejected, 49โ€“50, the cloture vote needed to move the bill forward.

The outcome prevents the legislation, for now, from advancing through the procedure set out.

For the crypto market, this represents an important regulatory setback, since the CLARITY Act aims to establish a federal framework for regulating digital assets.

๐Ÿ“‰ MACRO + REGULATION

So we have two relevant forces operating simultaneously:

๐Ÿฆ More restrictive Fed
๐Ÿ“œ CLARITY Act blocked
๐Ÿ’ง Liquidity remains a concern
โšก Elevated volatility

And that helps explain why trading with leverage during weeks of major events can be especially dangerous.

๐Ÿ”Ž But thereโ€™s one important detail:

The failure of this vote doesnโ€™t necessarily mean the end of the CLARITY Act.

The result was a procedural defeat, and the bill could return to negotiations or be reconsidered later.

Meanwhile, proposals related to creating a strategic Bitcoin reserve continue to move forward in Congress, keeping a contradictory legislative backdrop for the sector.

๐Ÿ“Œ Summary for the trader:

Fed โ†’ macro pressure

CLARITY โ†’ regulatory setback

Bitcoin reserve โ†’ potentially favorable legislative signal

Outcome โ†’ a high-volatility environment with high sensitivity to new headlines.

Source: Federal Reserve / U.S. Senate / Reuters.
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