US Policy Pulls Crypto Market in Two Directions Amid Inflation and Regulatory Hopes
The US policy environment is exerting conflicting forces on the crypto market.
Rising inflation and interest rates are keeping pressure on risk assets, while weaker employment data has reduced expectations for further monetary tightening, providing some breathing room for markets.
Certain tokens, such as $PAXG and $XAUT, continue to benefit from defensive demand, and revenue-generating protocols like $UNI and $CRV remain relatively resilient.
However, meme and political tokens are vulnerable due to waning risk appetite, with $CRO facing additional pressure following the reported withdrawal of the Trump Media deal.
The US Senate's advancement of the Clarity Act could have a more significant impact on crypto in the long run by providing clearer regulation, which may strengthen institutional confidence and create a defined framework for digital assets.