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SEC’s Paul Atkins Pushes Congress to Sign CLARITY Act

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21Shares Introduces JitoSOL ETP to Offer Staking Rewards via Solana

TLDR:

  • SEC Chair Paul Atkins urges Congress to pass the CLARITY Act for clear crypto rules. 
  • Senate Agriculture Committee advances bill expanding CFTC authority over digital assets. 
  • Industry leaders like Coinbase and Ripple welcome clarity for institutional participation. 
  • Prediction markets show growing confidence that the CLARITY Act will pass in 2026. 

 

The CLARITY Act is gaining momentum as SEC Chair Paul Atkins urges Congress to act. The bill seeks to define crypto market rules, protect consumers, and provide legal certainty for both retail and institutional participants in the U.S.

SEC Chair Calls for Immediate Congressional Action

SEC Chair Paul Atkins has publicly urged Congress to pass the CLARITY Act without delay. He stated that current frameworks for cryptocurrency oversight are insufficient to guide the rapidly evolving industry. 

The emphasis is on creating rules through legislation rather than relying on enforcement actions or lawsuits. Atkins highlighted that regulatory uncertainty has become a risk to the market rather than a safeguard for investors. 

He emphasized the importance of clearly defining jurisdiction, protecting consumers, and allowing institutions to operate with legal certainty. The SEC is actively seeking congressional support to implement these measures.

During a joint session with CFTC Chair Michael Salig, both regulators confirmed their commitment to harmonizing regulatory approaches. 

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The collaboration aims to provide confidence to market participants and ensure that the United States maintains a leadership position in the global cryptocurrency market.

Coinbase’s chief policy officer described the session as “extremely impressive,” noting Chairman Salig’s focus on bringing global crypto markets back to U.S. oversight. 

The CLARITY Act is not intended to boost prices but to provide clear rules, allowing both retail and institutional participants to operate with certainty.

Atkins also indicated that delay is no longer acceptable. By publicly urging Congress, the SEC signals that a clear regulatory framework is essential for stable and predictable market operations.

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Legislative and Industry Support Builds

The Senate Agriculture Committee recently voted 12-11 to advance cryptocurrency market structure legislation, expanding CFTC authority over digital commodities, including Bitcoin.

The bill complements the CLARITY Act framework passed by the House in 2025 and seeks to clarify the roles of the SEC and CFTC in market oversight.

Industry leaders have welcomed this development. Brad Garlinghouse of Ripple Labs stated, “Clarity is better than chaos.” Coinbase worked with banking institutions to rewrite parts of the market structure bill, addressing the concerns of both traditional and digital finance stakeholders.

Prediction markets tracking the bill show odds of passage rising from 20% to 60%, reflecting growing confidence among investors and policymakers. White House crypto czar David Sacks has convened meetings with banks, trade groups, and crypto firms to discuss the CLARITY Act.

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If this momentum continues, the legislation could mark the end of the “wild west” environment for U.S. crypto markets. Clearer rules are expected to foster broader institutional participation, provide legal certainty, and support long-term growth across the digital asset ecosystem.

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ME Token Slumps After Magic Eden Announces Buybacks, Staking Rewards

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ME Token Slumps After Magic Eden Announces Buybacks, Staking Rewards


The former NFT marketplace said it will allocate revenue to the ME ecosystem, including USDC rewards paid out to stakers.

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Solana (SOL) Plunges Below $100, Bitcoin (BTC) Recovers From 15-Month Low: Market Watch

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BTCUSD Feb 4. Source: TradingView


Meanwhile, HASH and HYPE have declined the most over the past 24 hours after charting impressive gains lately.

Bitcoin’s adverse price actions as of late worsened yesterday when the asset tumbled to its lowest positions since early November 2024 at $73,000 before recovering by a few grand.

Most altcoins followed suit with enhanced volatility, but some, such as SOL, HYPE, and CC, have been hit harder than others.

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BTC’s Latest Rollercoaster

It was just a week ago when the primary cryptocurrency challenged the $90,000 resistance ahead of the first FOMC meeting for the year. After it became official that the Fed won’t cut the rates again, BTC remained sluggish at first but started to decline in the following hours.

The escalating tension in the Middle East was also blamed for another crash that took place on Thursday when bitcoin plunged to $81,000. It bounced off to $84,000 on Friday but tumbled once again on Saturday, this time to under $75,000. Another recovery attempt followed on Monday, only to be rejected at $79,000.

Tuesday brought the latest crash, this time to a 15-month low of $73,000. It has rebounded since then to just over $76,000, but it’s still 3% down on the day. Moreover, it has lost 14% of its value weekly and a whopping 18% monthly.

Its market capitalization has plummeted to $1.525 trillion on CG, while its dominance over the alts has declined to 57.3%.

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BTCUSD Feb 4. Source: TradingView
BTCUSD Feb 4. Source: TradingView

SOL Below $100

Most larger-cap altcoins have felt the consequences of the violent market crash lately. Ethereum went from over $3,000 to $2,100 in the span of a week, before bouncing to $2,280 as of now. BNB is down to $760, while SOL has plummeted to under $100 after a 7% daily decline.

Even the recent high-flyer HYPE has retraced hard daily. The token is down by 11% to $33. CC and ZEC are also deep in the red, while XMR has gained the most from the larger caps.

The cumulative market cap of all crypto assets has seen more than $70 billion erased in a day and is down to $2.65 trillion on CG.

Cryptocurrency Market Overview Feb 4. Source: QuantifyCrypto
Cryptocurrency Market Overview Feb 4. Source: QuantifyCrypto

 

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Pumpfun Unveils Investment Arm and $3 Million Hackathon

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Pumpfun Unveils Investment Arm and $3 Million Hackathon


PUMP rallied as much as 10% but erased its gains as crypto markets dipped.

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Spot Bitcoin ETF AUM Hits Lowest Level Since April 2025

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Spot Bitcoin ETF AUM Hits Lowest Level Since April 2025

Assets in spot Bitcoin (BTC) ETFs slipped below $100 billion on Tuesday following a fresh $272 million in outflows.

According to data from SoSoValue, the move marked the first time spot Bitcoin ETF assets under management have fallen below that level since April 2025, after peaking at about $168 billion in October

The drop came amid a broader crypto market sell-off, with Bitcoin sliding below $74,000 on Tuesday. The global cryptocurrency market capitalization fell from $3.11 trillion to $2.64 trillion over the past week, according to CoinGecko.

Altcoin funds secure modest inflows

The latest outflows from spot Bitcoin ETFs followed a brief rebound in flows on Monday, when the products attracted $562 million in net inflows.

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Still, Bitcoin funds resumed losses on Tuesday, pushing year-to-date outflows to almost $1.3 billion, coming in line with ongoing market volatility.

Spot Bitcoin ETF flows since Jan. 26, 2026. Source: SoSoValue

By contrast, ETFs tracking altcoins such as Ether (ETH), XRP (XRP) and Solana (SOL) recorded modest inflows of $14 million, $19.6 million and $1.2 million, respectively.

Is institutional adoption moving beyond ETFs?

The ongoing sell-off in Bitcoin ETFs comes as BTC trades below the ETF creation cost basis of $84,000, suggesting new ETF shares are being issued at a loss and placing pressure on fund flows.

Market observers say that the slump is unlikely to trigger further mass sell-offs in ETFs.

“My guess is vast majority of assets in spot BTC ETFs stay put regardless,” ETF analyst Nate Geraci wrote on X on Monday.

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Source: Nate Geraci

Thomas Restout, CEO of institutional liquidity provider B2C2, echoed the sentiment, noting that institutional ETF investors are generally resilient. Still, he hinted that a shift toward onchain trading may be underway.

Related: VistaShares launches Treasury ETF with options-based Bitcoin exposure

“The benefit of institutions coming in and buying ETFs is they’re far more resilient. They will sit on their views and positions for longer,” Restout said in a Rulematch Spot On podcast on Monday.

“I think the next level of transformation is institutions actually trading crypto, rather than just using securitized ETFs. We’re expecting the next wave of institutions to be the ones trading the underlying assets directly,” he noted.