07.05.202614:00 Forex Analysis & Reviews: Ethical side of CLARITY Act

Bitcoin tried to climb back above $81,000 but failed. There are clearly fewer and fewer buyers willing to buy at the current highs, especially after such a large rise over the past ten days.

Meanwhile, US Senator Kirsten Gillibrand has said categorically that the CLARITY Act will not see the light of day unless a strict ban is introduced on any ties between US officials and the crypto industry. In her view, no one will vote for the bill if it does not include an ethics provision. She said that no one would vote for the bill unless it included an ethics provision and warned that they could not allow members of Congress, senior administration officials, presidents, or vice presidents to enrich themselves from the industry because of their insider status. Her statement signaled clearly that the ethical dimension of the crypto-regulation bill is moving to the fore, eclipsing even the technical details.

Importantly, next week the Senate Banking Committee is due to hold hearings on the CLARITY Act. Those hearings are expected to address a broad range of critical issues: from ethical dilemmas and consumer-protection rules to measures against illicit finance. Considering Senator Gillibrand's remarks, the focus on ethics becomes not merely one topic among many but effectively a key condition for the bill's passage through the legislative process. Without clear safeguards to eliminate conflicts of interest and the use of insider information, the bill risks remaining an unratified initiative, lacking the necessary support.

Also, worth remembering, no compromise has yet been reached within banking circles regarding stablecoin yields.

Trading recommendations:

Regarding Bitcoin's technical picture, buyers are currently targeting a return to $81,700, which opens a direct route to $83,600, and from there to $85,600. The most distant target is the high near $87,900, breaching which would signal attempts to return to a bull market. In case of a decline, I expect buyers at $80,100. A fall below that area could quickly push BTC toward $78,200. The furthest target there would be around $76,300.

Regarding Ethereum's technical picture, a clear consolidation above $2,338 opens a direct route to $2,387. The most distant target is the high near $2,446, breaching which would indicate strengthening bullish sentiment and a return of buyer interest. In case of a decline, I expect buyers at $2,290. A fall below that area could quickly send ETH toward $2,225. The furthest target there would be around $2,162.

What we see on the chart:

- Red lines indicate support and resistance levels where either a price slowdown or active growth is expected;

- Green lines indicate the 50-day moving average;

- Blue lines indicate the 100-day moving average;

- Light green lines indicate the 200-day moving average.

A crossover, or a price test of moving averages, typically either halts the move or sparks fresh market momentum.