đ° Can the CLARITY Act still be saved? Whatâs the Democratsâ room to reverse the changes they wanted?
The CLARITY Act lost a key vote in the Senate, but that doesnât mean itâs dead. The bill still has a chance to move forwardâon the condition that Democrats complete the changes they want on time. But with not much time left, the billâs outlook has become extremely bleak. For the crypto industry, this means regulatory uncertainty is still pulling and tugging.
Why is this news important?
The failure of the CLARITY Act matters because it directly affects whether U.S. spot crypto ETFs can be approved and launched smoothly. The amendments repeatedly emphasized by Democrats, in essence, are about striking a balance between the strictness of regulation and the industryâs willingness to accept it. If the bill doesnât advance well, investors may have to keep waiting, and the marketâs expectations for regulatory clarity will once again be dashed. This reflects the complex game the crypto industry is playing in the U.S. Congressâneeding to comply, while also fearing it could be choked off. With the window getting smaller and smaller, if the bill ultimately dies in committee, the impact on the industryâs confidence would be huge.
Impact on the market
The direct impact on BTC and ETH is relatively indirect, but there will be an emotional/sentiment ripple effect. If the bill fails, it will reinforce the marketâs pessimistic expectation that U.S. regulation may fall short of expectations, further suppressing crypto risk appetite. As a safe-haven asset, BTC may hold up relatively better when safe-haven sentiment heats up, but ETH and smaller altcoins could face more pressure because they are more dependent on regulatory clarity. Historically, every time there are signals of crypto regulationâespecially in the U.S., the worldâs largest marketâprice volatility tends to be amplified. For example, before ETF applications were approved in 2024, the market went through a long period of choppy consolidation.
Trading approach
đĄ In the current environment, BTC looks promising for a rebound if it holds below $78K, but the risk increases for ETH if it breaks below the $2.4K support level from the prior phase. If Democrats refuse to compromise, this bill will most likely truly be dead. If suddenly news breaks that a revised proposal reaches consensus, resistance above $80K will be tested again. **Invalidation condition: If the bill is fully terminated and the legislative process ends, this view is no longer valid.**
This article is not sponsored by any project. The author does not hold the assets mentioned in this piece.
$BTC $ETH #BTC #ETH
â ď¸ Not investment advice. Predictions are for reference only
The CLARITY Act lost a key vote in the Senate, but that doesnât mean itâs dead. The bill still has a chance to move forwardâon the condition that Democrats complete the changes they want on time. But with not much time left, the billâs outlook has become extremely bleak. For the crypto industry, this means regulatory uncertainty is still pulling and tugging.
Why is this news important?
The failure of the CLARITY Act matters because it directly affects whether U.S. spot crypto ETFs can be approved and launched smoothly. The amendments repeatedly emphasized by Democrats, in essence, are about striking a balance between the strictness of regulation and the industryâs willingness to accept it. If the bill doesnât advance well, investors may have to keep waiting, and the marketâs expectations for regulatory clarity will once again be dashed. This reflects the complex game the crypto industry is playing in the U.S. Congressâneeding to comply, while also fearing it could be choked off. With the window getting smaller and smaller, if the bill ultimately dies in committee, the impact on the industryâs confidence would be huge.
Impact on the market
The direct impact on BTC and ETH is relatively indirect, but there will be an emotional/sentiment ripple effect. If the bill fails, it will reinforce the marketâs pessimistic expectation that U.S. regulation may fall short of expectations, further suppressing crypto risk appetite. As a safe-haven asset, BTC may hold up relatively better when safe-haven sentiment heats up, but ETH and smaller altcoins could face more pressure because they are more dependent on regulatory clarity. Historically, every time there are signals of crypto regulationâespecially in the U.S., the worldâs largest marketâprice volatility tends to be amplified. For example, before ETF applications were approved in 2024, the market went through a long period of choppy consolidation.
Trading approach
đĄ In the current environment, BTC looks promising for a rebound if it holds below $78K, but the risk increases for ETH if it breaks below the $2.4K support level from the prior phase. If Democrats refuse to compromise, this bill will most likely truly be dead. If suddenly news breaks that a revised proposal reaches consensus, resistance above $80K will be tested again. **Invalidation condition: If the bill is fully terminated and the legislative process ends, this view is no longer valid.**
This article is not sponsored by any project. The author does not hold the assets mentioned in this piece.
$BTC $ETH #BTC #ETH
â ď¸ Not investment advice. Predictions are for reference only
