19.01.202610:07 Forex Analysis & Reviews: CLARITY Act passage could reinforce US leadership in crypto regulation

Bitcoin slid sharply toward $93,000 after a fresh flare?up in geopolitical tensions involving the United States.

Meanwhile, the CLARITY story continues. Galaxy Research says passage of the CLARITY Act would not only clarify the legal framework but also attract institutional investors who have refrained from committing capital because of regulatory uncertainty. Clear rules would allow institutions to design strategies, assess risks, and invest in crypto assets with greater confidence.

Institutional capital, in turn, can boost market liquidity, stabilize prices, and support sustained long?term growth. Approval of the law could also signal to other countries to accelerate the development of their own regulatory frameworks for the crypto industry.

However, delays to a Senate vote are worrying many market participants. Disputes with Coinbase underscore the difficulty of reaching ca ompromise on key provisions of the bill. It is important that lawmakers listen to the industry and take the interests of all stakeholders into account.

Ongoing uncertainty could slow crypto innovation in the United States and prompt capital to flow to more favorable jurisdictions. For that reason, resolving disagreements quickly and passing a harmonized bill is a priority to ensure sustainable growth and development of the crypto market.

Recall that last week the Senate failed to hold a session to consider amendments to the bill that would split oversight of digital assets between the Commodity Futures Trading Commission and the Securities and Exchange Commission. Nevertheless, a large number of US senators still support CLARITY and believe passage is necessary. Committee hearings on the matter are reportedly rescheduled for the end of the month.

Trading recommendations:

Bitcoin buyers are now targeting a return to $94,000, which would open a direct path to $95,800 and then to $97,600. The farther target is the peak near $99,400. A break above that level would signal attempts to restore the bull market. On a decline, buyers are expected at $92,100. A drop below that area could quickly push BTC toward $90,500. The farthest downside target would be around $88,700.

As for Ethereum, clear consolidation above $3,257 would open a direct route to $3,340. The farther target is the peak near $3,426. Breaching that level would strengthen bullish sentiment and renew buyer interest. If ETH falls, buyers are anticipated at $3,192. A return below that zone could quickly send ETH down to about $3,129. The farthest downside target would be around $3,072.

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.

Typically, a crossover or price test of these moving averages either halts market momentum or sets a new directional impulse.