In a significant development within the cryptocurrency industry, Brian Armstrong, the Chief Executive Officer of Coinbase (NASDAQ:COIN), has rescinded his support for the proposed Crypto Clarity Act. Armstrong’s decision underscores his concern over what he identifies as fundamental defects in the legislation. This withdrawal has been met with varied responses, with several key market participants viewing it as a positive signal for cryptocurrencies.
The Crypto Clarity Act, which has been under intense scrutiny, has elicited considerable opposition across the crypto sector. A central critique is that the bill appears to seek increased centralization over digital assets under the pretext of consumer safeguard measures. Opponents argue that rather than fostering innovation, the legislation disproportionately benefits entrenched banking and financial institutions at the cost of decentralized finance (DeFi) ecosystems.
Critical provisions within the bill have been particularly contentious. Among them are a proposed prohibition on tokenized equities, which could restrict innovative financial instruments. Additionally, stringent constraints on DeFi protocols raise concerns about infringements on financial privacy. The bill also suggests a transfer of significant regulatory authority from the Commodity Futures Trading Commission (CFTC) to the Securities and Exchange Commission (SEC), shifting the oversight landscape. Amendments targeting stablecoins, especially those generating yield, threaten to impose severe restrictions, creating uncertainty for these assets.
Industry voices such as trader and analyst Michael van de Poppe have expressed that the apparent stalling of the Clarity Act is a bullish development for the broader crypto markets. Van de Poppe contends that enacting the bill in its present form would have inflicted greater harm on the crypto ecosystem than the absence of regulatory clarity altogether.
Following the decision by the Senate Banking Committee to postpone further examination of the bill, it is expected that negotiations will proceed discreetly. This ongoing dialogue could pave the way for the formulation of a more balanced regulatory framework, similar in nature to the drawn-out European Markets in Crypto-Assets (MiCA) regime. The current suspension of immediate regulatory pressures is perceived to be enhancing investor sentiment within the markets.
From a broader economic and market perspective, van de Poppe forecasts a reallocation of capital from commodities to cryptocurrencies. Notably, gold, which recently surpassed historic highs, is exhibiting signs of weakening momentum. In contrast, Bitcoin (CRYPTO: BTC) is showing relative strength against gold for the first time since mid-2025, an indicator closely monitored by market participants.
On the technical front, Bitcoin has regained momentum by surpassing several key moving averages and breaking through significant resistance thresholds. This shift has returned the asset to an upward trend. Van de Poppe projects a probable price trajectory targeting the $100,000 to $105,000 range, acknowledging the possibility of intermittent short-term corrections during this advance.
Ethereum (CRYPTO: ETH) has likewise begun to outperform Bitcoin following an extended period of relative underperformance. This change is often a precursor to heightened volatility and potential upside across the altcoin sector. Collectively, alternative cryptocurrencies have reclaimed important moving averages, indicating the onset of a new bullish phase.
According to van de Poppe, the current market conditions favor maintaining or increasing exposure to risk assets. Despite having his altcoin portfolio fully invested, he highlights that the failure of the Clarity Act combined with the strengthening technical indicators across crypto markets suggests a constructive outlook moving forward.