Crypto Market Surges Despite Regulatory Setbacks

The US Senate recently failed to pass the CLARITY Act, which was not surprising given that it required 60 votes and only has 53 Republican seats.

This procedural vote initially caused a dip in the market, but the decline was short-lived as investors had already priced in this outcome.

The Federal Reserve also raised interest rates, but crypto barely reacted to this news.

So what's behind the recent surge in crypto? Some theories point to the US House Financial Services Committee's approval of a bill to create a strategic Bitcoin reserve. This development has been met with optimism as it would require Bitcoin to be held for 20 years and not sold, exchanged, or pledged.

Another possible factor is Coinbase's CEO statement that they no longer need the CLARITY Act and will work with regulators instead.