15.05.202611:03 Forex Analysis & Reviews: CLARITY Act passes Senate Banking Committee

Bitcoin's price briefly spiked yesterday after news that the Senate Banking Committee approved the CLARITY Act: 15 votes in favor, 9 against. The bill was supported by all committee Republicans and two Democrats — Ruben Gallego and Angela Alsobrooks. The measure now must go to a full Senate vote, where advancing will require 60 votes. That is a high threshold and will be where the main battle unfolds.

The adopted amendments look like a reasonable compromise. Regulators will be tasked with simplifying rules for firms that operate across multiple asset classes simultaneously: securities, futures, swaps and digital commodities.

A regulatory cause for artificial intelligence also deserves special mention: financial firms will be able to test AI?based products under regulatory supervision without entering the full market.

An important point is the compromise on stablecoins. Legislators are poised to ban passive income for US customers simply for holding tokens, while rewards for actual activity — transactions, product use — will be preserved. How this will be implemented in practice is not yet clear, which obviously leaves room for manipulation of this provision.

Notable rejections are also telling. Elizabeth Warren's amendment to toughen sanctions on crypto mixers like Tornado Cash failed. Restrictions on cryptocurrency in retirement accounts were also struck down. The most politically charged amendment — banning the president and members of Congress from issuing their own crypto assets — did not gain support amid disputes around crypto projects tied to the Trump family. Harsher limits on DeFi were also left off the table.

The result is predictable: the industry-friendly part of the bill passed the committee in a relatively mild form, while measures that could restrict the market or the political class were rejected. That is a positive signal for the crypto market, but the finish line is still far off.

Trading recommendations

Bitcoin (BTC/USD)

Buyers are currently targeting a return to $81,800, which would open a direct route to $83,600 and then to $85,600. The farthest target is the high around $87,900; surpassing that would indicate attempts to return to a bull market. On the downside, buyers are expected at $80,100. A drop below that area could quickly push BTC toward about $78,300. The farthest downside target would be the $76,300 area.

Ethereum (ETH/USD)

A clear close above $2,316 would open a direct path to $2,373. The farthest target is the high around $2,446; breaking that would signal strengthening bullish sentiment and a return of buyer interest. On the downside, buyers are expected at $2,244. A move back below that area could quickly push ETH toward about $2,181. The farthest downside target would be the $2,114 area.

What's on the chart

• The red lines represent support and resistance levels, where the 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.