The crypto market remained on edge on Saturday, with Bitcoin and most altcoins being in the red as the White House threatened to withdraw its support of the CLARITY Act.
Summary
- The crypto market remained on edge on Saturday.
- The White House has warned that it may withdraw its support for the bill.
- Still, most people believe that the bill will pass eventually.
Crypto market retreats amid CLARITY Act risks
Bitcoin (BTC) retreated to $3,293, while Ethereum (ETH) moved to $3,285. The market capitalization of all coins dropped to $3.2 trillion, while the 24-hour volume slumped by 25% to $90 billion.
This decline happened as the White House threatened to pull its support for the Market Structure Bill, which stalled at the Senate before the markup. The Trump administration is furious with Coinbase, which withdrew its support for the bill, calling it a rug pull against the White House and the crypto industry.
Additionally, the administration believes that one company does not speak for the entire crypto industry. It is now pushing for more talks to find a deal that satisfies the crypto industry and the banking sector.
Coinbase has argued that the bill will curtail the fast-growing stablecoin industry, which has accumulated over $308 billion in assets. by removing the ability for crypto exchanges to pay interest.
Banks and credit unions have complained that their industry will be hurt if this happens, as customers will withdraw their funds and move them to stablecoins. As such, they argue that such a move will hurt the economy by reducing the amount of money available to lend to businesses.
While Coinbase has withdrawn its support for the bill, other top companies in the industry have supported it. Robinhood has argued that the bill will provide regulatory clarity for the crypto industry and help it provide staking solutions to its customers. Others that have expressed optimism about the bill are Kraken, Ripple Labs, and Galaxy.
Traders are optimistic that the Market Structure Bill will pass
Analysts and traders are optimistic that the bill will pass eventually, noting that the current delay is part of a negotiating tactic. A Polymarket poll with $17,930 in assets places the odds of it passing at 55%, up from this month’s low of 40%. Similarly, a Kalshi poll places the odds that the bill will become law before 2027 at 52%Â
The CLARITY Act is the most significant crypto legislation from the United States since Congress passed the GENIUS Act in 2025. GENIUS, which focused on stablecoins, put in place the rules that stablecoin issuers must follow, including the assets they should hold.
The CLARITY Act, on the other hand, focuses on dividing the roles between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).