SEC Chair Reiterates Support for CLARITY Act Amid Crypto Market Downturn

US SEC Chairman Paul Atkins has reaffirmed his support for the CLARITY Act, which aims to provide a regulatory framework for digital financial innovations in the US. This move comes as the cryptocurrency market is struggling to regain its footing, with Bitcoin (BTC) trading below $65,000 and Ethereum (ETH) hovering around $1,900.

Atkins expressed his commitment to supporting Congress in advancing the CLARITY Act on X platform, stating 'I am committed to supporting Congress in advancing the CLARITY Act, including providing technical assistance. America's leadership in the digital financial revolution means energizing US innovators with a regulatory framework to match.'

The announcement had a modest impact on the market, with Bitcoin and Ethereum experiencing a 0.62% and 1.12% increase, respectively. However, the rally was short-lived as the US Senate Majority Leader prioritized a sanctions bill against Russia over the CLARITY Act.

The Federal Reserve's upcoming interest rate decision is also expected to weigh on the market, with a 70.6% probability of maintaining the current interest rate and a 29.4% chance of a 25-basis-point rate hike. The increased attractiveness of US Treasuries and dollar assets has put pressure on high-risk assets like cryptocurrencies.