02.04.202610:03 Forex Analysis & Reviews: Market anticipates significant progress in passing Clarity Act

While the crypto market is experiencing another decline following another Trump comment about the war in the Middle East, Coinbase's Chief Legal Officer Paul Grewal said he expects significant progress on the US Clarity Act in the short term.

In a published interview, Grewal confirmed that the bill to structure the crypto market is moving forward despite ongoing debates over stablecoin yield.

His remarks came amid continued, at times heated, debates about the yield on stablecoins — digital assets pegged to fiat currencies or other real?world assets. Despite active discussions not only about stability but also about the potential profitability of stablecoins, Grewal expressed confidence that the bill will make headway. He emphasized that lawmakers are seeking a balanced regulatory framework that would foster crypto innovation while protecting investors and market stability. Special attention is being paid to ensuring regulation does not become an excessive burden on the developing sector, but also does not allow systemic risks to emerge.

"I think we're very close to an agreement," Grewal said. "We see a real understanding that rewards matter, but other key elements of the bill are also critical to realizing President Trump's vision of the United States as the crypto capital of the world."

Recall that the US banking sector is actively lobbying to include provisions in the Clarity Act that would prohibit crypto platforms from offering yield in stablecoins on idle balances. Banks argue that crypto firms should be regulated under the same principles as traditional financial institutions, and that allowing yield in stablecoins could lead to significant deposit outflows from banks.

"I understand the theoretical argument that stablecoins somehow pose a risk of deposits flowing out of banks, especially local banks," Grewal said. "But if that were true, we would see evidence of it. In fact, there has been no evidence of deposit outflows."

Trading recommendations

Bitcoin

Buyers are currently targeting a return to $68,000, which would open a direct path to $69,600, then $71,400, with $72,500 as the farther target — a break above which would signal attempts to restore the bull market. On the downside, buyers are expected at $66,300. A drop below that area could quickly push BTC toward $64,900, with a farther downside target around $62,600.

Ethereum

A clear hold above $2,105 would open a direct path to $2,175, with a farther target near $2,238; breaking that would indicate strengthening bullish sentiment and renewed buyer interest. On the downside, buyers are expected at $2,037. A fall below that area could quickly push ETH toward $1,968, with a farther target around $1,911.

What's on the chart

• The red lines represent support and resistance levels, where price is expected to either pause or react sharply.
• The green line shows the 50-day moving average.
• The blue line is the 100-day moving average.
• The lime line is the 200-day moving average.

Price testing or crossing any of these moving averages often either halts movement or injects fresh momentum into the market.