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Crypto News: CLARITY Act Nears Senate, Crypto Market Eyes Bull Shift

Crypto News: , Crypto Market Eyes Bull Shift

The cryptocurrency market is experiencing a rough patch right now, with prices hovering under pressure and thin liquidity keeping traders on edge. Bitcoin and Ethereum are struggling to break key resistance levels, and altcoins are feeling the squeeze from ongoing deleveraging. But amid this weakness, a pivotal piece of crypto news from Washington is sparking hope: the is inching closer to a Senate markup.

This isn’t a magic bullet to ignite an immediate bull run. The market won’t flip overnight. However, it’s a game-changer for reducing regulatory uncertainty—a massive overhang that’s held back institutional money for years. As senior figures in the Trump administration signal a more crypto-friendly path, traders and investors are starting to eye a potential bull shift on the horizon.

What is the CLARITY Act and Why Does It Matter?

The CLARITY Act, formally known as the “Creating Legal Accountability for Rogue Innovators and Technology Act,” aims to bring much-needed order to the chaotic world of crypto regulation in the US. For too long, crypto firms have been caught in a regulatory gray zone. The Securities and Exchange Commission (SEC) claims many tokens are securities, subjecting them to strict disclosure rules. Meanwhile, the Commodity Futures Trading Commission (CFTC) treats others like commodities, with lighter oversight focused on derivatives and futures.

This jurisdictional tug-of-war has led to endless confusion:

  • Is your token a security or a commodity? It depends on which agency you ask.
  • Trading platforms face lawsuits for offering the “wrong” assets.
  • Custody rules vary wildly, scaring off banks and institutions.
  • On-chain activities like DeFi lending or staking could trigger enforcement actions without clear guidelines.

The proposes clear divisions:

  • SEC oversight for centralized tokens with investment-like features.
  • CFTC oversight for decentralized, functional assets like Bitcoin.
  • Specific rules for exchanges, custodians, and blockchain activities to prevent overlap.

It’s not about deregulation—obstacles remain—but about predictability. Markets thrive on known rules, not surprise crackdowns. Think of it like traffic lights: red still means stop, but now everyone knows which light to watch.

Latest Updates: Senate Markup on the Horizon

Recent developments have supercharged optimism around the bill. David Sacks, the White House’s AI and crypto advisor and a influential voice in the Trump administration, shared a major update. He confirmed the is slated for Senate markup in January.

For the uninitiated, Senate markup is the critical stage where legislators dissect the bill line-by-line, amend it, and prepare for a full vote. It’s a strong signal of momentum—no one’s letting this gather dust.

Sacks noted endorsements from key committee chairs:

  • Senate Banking Committee Chair Tim Scott: A long-time crypto advocate pushing for balanced innovation.
  • Agriculture Committee Chair John Boozman: Overseeing CFTC matters, aligning with commodity-focused rules.

This bipartisan backing (with pro-crypto Republicans leading) shows lawmakers are converging on a framework. Progress hasn’t stalled; it’s accelerating.

How This Ties Into the Current Crypto Market Weakness

Don’t get it twisted—the market is still weak today. Bitcoin trades sideways below $100K (hypothetically, given recent trends), Ethereum faces ETF outflow pressures, and leverage is being wiped out across exchanges. Liquidity is low, whales are sidelining, and macro factors like interest rates add headwinds.

Regulatory fear has been the invisible anchor. High-profile cases like SEC vs. Ripple, Coinbase lawsuits, and the FTX fallout amplified downside risks. Every tweet from Gary Gensler felt like a sell signal. Institutions sat out, waiting for clarity.

Now, with the progress:

  • Policy risk drops: Easier for funds to price crypto assets without lawsuit black swans.
  • Institutional inflows possible: BlackRock, Fidelity, and others can ramp up once rules are set.
  • Selling pressure eases: Less panic dumping when legal fog lifts.

History backs this. Post-ETF approvals in 2024, Bitcoin surged on clarity. The could be the next catalyst, stabilizing bases for the next leg up.

Trump Administration’s Softening Stance: A Broader Shift

Beyond the bill, voices close to the administration are turning pro-crypto. David Sacks isn’t alone—figures like Vivek Ramaswamy and even VP picks have touted Bitcoin as strategic reserve assets. This contrasts sharply with the Biden-era enforcement-heavy approach.

A clearer regulatory path under Trump 2.0 could:

  1. Boost US-based innovation, keeping talent from fleeing to Dubai or Singapore.
  2. Attract trillions in sidelined capital—pension funds, sovereign wealth, family offices.
  3. Position crypto as mainstream finance, not a Wild West gamble.

What Traders and Investors Should Watch Next

Short-term: Markup details in January. Amendments could strengthen or dilute the bill—track Scott and Boozman’s moves.

Medium-term: Full Senate vote, then House reconciliation. If passed, expect CFTC/SEC joint rules by mid-2026.

Market impact scenarios:

Scenario Market Reaction
Bill passes smoothly Bullish: BTC to $150K+, altseason
Delays or amendments Sideways: Stabilizes current range
Stalls in Senate Bearish: Renewed uncertainty

Pair this with on-chain metrics: Watch for rising stablecoin inflows and declining exchange balances as signs of accumulation.

Final Thoughts: Clarity Over Hype

The crypto market eyes bull shift, but it’s not hype—it’s fundamentals. The won’t pump prices today, but it removes a core risk that’s plagued the space since 2017’s ICO bust. With liquidity poised to return (Fed cuts incoming?), this regulatory green light could extend rallies and dampen crashes.

Traders: Position for volatility around January markup. Investors: Accumulate quality assets like BTC, ETH, and SOL. The era of regulatory roulette is ending. Welcome to predictable crypto growth.

Stay tuned for more crypto news as this unfolds—clarity is coming, and with it, potentially the bull market we’ve all been waiting for.


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Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.

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