The crypto market pulled back sharply as political tension in Washington slowed progress on key regulation. Bitcoin (BTC) fell to $3,293, while Ethereum (ETH) moved to $3,285.
At the same time, total crypto market value dropped to $3.2 trillion, and 24-hour trading volume fell by 25% to $90 billion. Investors reacted to signs that the White House may withdraw support for the Market Structure Bill, now stalled in the Senate.
Policy Uncertainty Pressures Crypto Prices
The decline followed reports that the White House threatened to step back from the Market Structure Bill after it failed to reach markup in the Senate. The delay raised concerns about the future of clear crypto rules in the United States.
As uncertainty grew, traders reduced exposure, leading to lower prices and weaker trading activity across major assets. The Trump administration expressed strong anger toward Coinbase after the exchange withdrew its support for the bill.
Officials described the move as a “rug pull” against both the White House and the wider crypto industry. The administration also stressed that no single company can speak for the entire sector.
As a result, it has pushed for renewed talks to reach a compromise that works for both crypto firms and traditional banks.
Crypto Firms Split Over Stablecoin Bill
Coinbase argued that the bill could harm the fast-growing stablecoin market, which now holds more than $308 billion in assets. The company warned that banning exchanges from paying interest would limit innovation and growth in this area.
Banks and credit unions took the opposite view. They warned that easier access to stablecoins could pull deposits away from banks, reduce lending, and weaken the broader economy.
Despite Coinbase’s exit, several major crypto companies continue to support the bill. Robinhood said the proposal would bring long-needed regulatory clarity and allow it to offer staking services more confidently.
Kraken, Ripple Labs, and Galaxy also voiced optimism, saying clear rules would help the industry grow within the law.
CLARITY Act Delay Seen as Strategic, Not a Setback
Many analysts and traders believe the delay reflects a negotiation strategy rather than a collapse of the bill. Betting markets support this view.
A Polymarket poll with $17,930 in assets shows a 55% chance of passage, up from a low of 40% earlier this month. A similar Kalshi poll places the odds of the bill becoming law before 2027 at 52%.
The CLARITY Act stands as the most important U.S. crypto bill since the GENIUS Act passed in 2025. The GENIUS Act focused on stablecoins and set rules for reserves and asset backing.
The CLARITY Act takes a different path. It aims to clearly divide oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). If passed, it could define how crypto operates in the United States for years to come.