The US Senate Banking Committee approved the long-discussed cryptocurrency regulation bill called the Clarity Act with a clear vote ratio of 15 to 9. The law in question aims to create a clear regulatory framework in the crypto market. Committee Chairman Tim Scott gained broader support by adding new amendments to the negotiations at the last minute during the vote. With this move, Scott managed to gain the support of two Democratic senators.
Rapid rise in crypto money
Developments regarding the bill created a positive atmosphere in cryptocurrencies in general. Following the producer price index data, Bitcoin recovered from the levels it fell during the week and exceeded the $ 81,000 limit again. According to CryptoAppsy data, Bitcoin traded at $81,055 in the Asian session. An increase of 2.3 percent was recorded in twenty-four hours and 1.9 percent in the last seven days.
In the altcoin market, XRP stands out. While XRP reached $1.49 with a 4.5 percent increase, it showed the best performance with 7.6 percent on a weekly basis. Dogecoin increased by 3 percent to $0.1159, BNB increased by 2 percent to $681, and Solana increased by 2 percent to $91.
Legal process will continue in the Clarity Act
The vote on the Clarity Act is seen as the most significant bipartisan initiative on U.S. cryptoasset market regulation in recent months. The legislation’s next stop will be its consolidation with a similar bill that previously passed along party lines in the Agriculture Committee. In its combined form, the law will be voted on in the Senate General Assembly and then sent to the House of Representatives.
However, some important items are still a matter of debate. In particular, regulations regarding law enforcement and ethical rules stand out as a condition of support for some Democrats. It is emphasized that these points will be decisive on the future course of the law.
Market effects of regulation
XRP’s recent performance is attributed to the decrease in legal uncertainties. As you may remember, XRP experienced serious price pressure for a long time within the scope of the US Securities and Exchange Commission’s case against Ripple Labs. Now, as the framework of the crypto market becomes clearer, the structural burden on the price is decreasing.
Renna Ba, ecosystem manager of Layer-2 platform Morph, stated that the Clarity Act brings a legal basis to the global payment industry by separating stablecoins for payment purposes from investment instruments. It is stated that in this way, projects in the sector can act with more self-confidence.
CK Zheng, co-founder of ZX Squared Capital, stated that the regulatory steps strengthen the view that the bear market in Bitcoin may have ended in the first quarter. Zheng said Bitcoin’s roughly 50 percent correction from the top is shallower than the roughly 78 percent decline in the 2022 cycle, and Bitcoin is increasingly evolving into a less volatile, mature asset class. It was emphasized that the STRC preferred share product, which offers $8.5 billion of interest from investors and a dividend rate of 11.5 percent, also supports this picture.
Renna Ba stated that the Clarity Act “provides the global payments industry with a long-needed legal foundation.”
Despite all this positive atmosphere, geopolitical and economic risks continue to affect. Oil prices increased after US President Donald Trump’s statements that there was no need to reopen the Strait of Hormuz; This reportedly increases inflation concerns. While Asia Pacific stock markets closed the day down 1.1 percent, US stock futures fell 0.2 percent. The US 10-year bond yield increased by 4 basis points and reached 4.52 percent.
After producer prices in Japan showed the fastest increase on an annual basis since 2023, the 10-year government bond interest rate increased by 7 basis points. The dollar rose for the fifth day in a row amid global uncertainty.
