CLARITY Act gets deadlock breakthrough that also opens the door to more Bitcoin demand

Senators and White House advisers have reportedly reached an agreement in principle on the stablecoin-yield language that had previously stalled the CLARITY Act. This legislation is crucial because it would establish permanent federal rules for crypto exchanges and grant the CFTC formal spot-market authority, something agency guidance cannot fully achieve. Banks had opposed the yield-bearing stablecoin provisions, fearing deposit drains, which provided systemic risk arguments for opponents. The revival of the bill is significant because major financial institutions, including Citi and JPMorgan, have linked the passage of market structure legislation to increased institutional adoption and higher Bitcoin price targets, citing the need to end regulation-by-enforcement. While the bill still faces hurdles like unresolved disputes over ethics and AML demands, the compromise signals progress. For investors, improving odds of passage suggest a gradual increase in institutional comfort, leading to stronger ETF inflows, deeper market liquidity, and greater long-term support for Bitcoin, rather than an immediate vertical price move.

(Source：CryptoSlate)