- Bitcoin falls out of the $80K range amid uncertainty over the 100+ amendments to the Clarity Act.
- The changes threaten to derail any progress the crypto industry has made on the bill.
Bitcoin (BTC) experienced a drawdown, falling to $78K briefly after a strong push above $80K in recent days. The premier crypto asset is at risk of reconfirming its bearish trend if it fails to hold the current support level.
The move follows the liquidation of leveraged positions over the last 24 hours, totaling more than $109.78 million in Bitcoin, with $94.42 million in longs and $15.36 million in shorts. Around $233.2 million in net outflows from spot Bitcoin exchange-traded funds (ETFs) preceded it.
Analysts warn that Bitcoin’s failure to hold above $78K could signal a deeper correction, suggesting the BTC market is not yet out of the bearish phase of its traditional four-year cycle. On the other hand, a successful bounce back to $80K could push it back into an uptrend momentum.
100+ Amendments in Clarity Act
The uncertainty surrounding the impending markup of the Clarity Act on Thursday seems to be the culprit for Bitcoin’s localized volatility. It appears many investors are carefully weighing the language of the bill that will be deliberated on the Senate floor, as it reportedly went through another round of revisions.
According to the latest chatter on Crypto Twitter (CT), legislators have submitted over 100 amendments in the pending Clarity Act. More than 40 of these amendments apparently came from Senator Elizabeth Warren (D-MA).
Given Warren’s consistently anti-crypto stance, such updates are likely bad news for the crypto community. Crypto in America’s Eleanor Terrett confirmed just that, saying that one of the lawmaker’s proposed rules is to prevent the Federal Reserve from granting master accounts to crypto companies.
Warren also said in a post that she’s pushing for tougher guardrails against potential conflicts of interest in the sector, particularly involving US President Donald Trump and his family, on the bill’s ethics provisions. Additionally, it’s worth noting that she has been pro-Central Bank Digital Currencies (CBDCs), so she may probably slip in some way to revive her advocacy in the pending Clarity Act.
Terrett revealed another amendment from Senator Jack Reed (D-RI). His proposed provision prohibits people from using crypto as legal tender, such as for paying taxes.
The DeFi Education Fund called a majority of the recent amendments anti-decentralized finance (DeFi). Among them are provisions that could deprive users of their right to self-custody, and others that could rewrite the Blockchain Regulatory Certainty Act (BRCA) to be weaponized against the industry it sought to protect.
