Crypto Market Hit by Congressional Setback and Rate Hike
The cryptocurrency market took a hit after the Senate failed to advance the CLARITY Act and the Federal Reserve raised interest rates by 25 basis points. Bitcoin dropped below $76,000, while Ethereum, Solana, Dogecoin, and XRP struggled to hold key levels.
Cryptocurrency market analyst Ray Salmond said that the legislative 'setback' is unlikely to derail crypto's broader growth and adoption. He argued in a Schwab Network interview on Wednesday that the regulatory story now shifts from legislation to rule making.
The SEC and CFTC are positioned to fill part of the regulatory void after the CLARITY Act failed to advance. However, industry executives and analysts have cautioned that agency rules may be more vulnerable to political changes and legal challenges than legislation passed by Congress.
Salmond expects regulators to continue moving forward regardless of whether the Clarity Act returns next year or later. This could keep Wall Street's crypto expansion moving.