Crypto Markets Rally Amid CLARITY Act's Failure
Crypto markets have rallied since the US Senate failed to advance the CLARITY Act. According to Bitwise's Matt Hougan, Bitcoin (BTC) has gained 8%, Ethereum (ETH) 7%, and several altcoins posted larger gains. NEAR rose 104%, Uniswap (UNI) gained 49%, and Avalanche (AVAX) advanced 43%.
The CLARITY Act's failure gives exchanges more flexibility to offer rewards on stablecoin balances under the GENIUS Act, which remains in effect. The law prohibits stablecoin issuers from paying interest but does not impose the same restriction on exchanges.
Hougan noted that the collapse of the legislation allowed regulators to move faster on industry rules. The SEC has issued an order allowing tokenized US stocks to trade through permissioned automated market makers and liquidity pools, letting the industry experiment rather than wait years for regulatory studies.