Avalanche Policy Coalition Launches Advisory Council Amid Extreme Fear

VADODARA, February 3, 2026 — The Avalanche Policy Coalition has launched a formal advisory council, according to a report by The Block. This council aims to establish global policy coordination as cryptocurrency regulations fragment across jurisdictions. Market structure suggests this move targets long-term regulatory clarity for the Avalanche ecosystem. The latest crypto news highlights a proactive institutional response during a period of extreme market fear.

Investigation: The Advisory Council's Formation and Mandate

Ava Labs General Counsel Lee Schneider leads the newly formed advisory council. Key figures like Chris Holmes, a member of the UK House of Lords, join the council. The committee has defined three primary goals for 2026. These include establishing token classification standards, defining regulatory intermediaries, and protecting internet accessibility. According to the coalition's statement, global policy coordination is now necessary. Various countries are actively forming their own cryptocurrency regulations.

Market Context & Historical Precedent

Historically, regulatory uncertainty has acted as a persistent headwind for cryptocurrency adoption. Similar to the 2017 ICO boom and subsequent crackdown, fragmented policies create market inefficiencies. The Avalanche coalition's move mirrors efforts by other ecosystems, such as Ethereum's Enterprise Ethereum Alliance, to engage policymakers early. In contrast, the current "Extreme Fear" sentiment, with a score of 17/100, market anxiety. This anxiety often stems from regulatory unpredictability and macroeconomic pressures.

, this development occurs alongside other significant market events. For instance, Galaxy Digital's recent $482 million Q4 loss highlights structural stress in crypto markets. Additionally, Bitmine's $46 million Ethereum acquisition signals institutional accumulation despite fear. These events collectively paint a complex picture of institutional positioning amid volatility.

Technical Architecture & Price Action

Avalanche (AVAX) currently trades at $10.11, down 0.55% in 24 hours. On-chain data indicates weak buying pressure near this level. The price hovers above a critical Fibonacci support zone at $9.80, derived from the 0.618 retracement of its 2025 rally. A break below this level would invalidate the current consolidation structure. Market analysts note that AVAX's Relative Strength Index (RSI) sits near 45, suggesting neutral momentum. The 50-day moving average at $10.50 acts as immediate resistance.

Consequently, the advisory council's work could influence AVAX's long-term valuation by reducing regulatory discount. Technical patterns show that similar policy-driven moves in 2021, like the Crypto Council for Innovation's launch, preceded periods of reduced volatility. However, the immediate price action remains dictated by broader market sentiment and liquidity flows.

By The Numbers

Why It Matters

This council matters because regulatory clarity directly impacts institutional adoption. Clear token classification standards could streamline compliance for projects built on Avalanche. Defining intermediaries may reduce legal risks for exchanges and DeFi protocols. Protecting internet accessibility aligns with broader Web3 values, potentially fostering developer growth. According to the U.S. Securities and Exchange Commission's framework, such efforts can mitigate enforcement actions. Institutional liquidity cycles often accelerate when regulatory overhangs diminish.

, retail market structure benefits from reduced policy uncertainty. Historical cycles suggest that coordinated regulatory advocacy, as seen with the Blockchain Association in 2023, correlates with increased mainstream investment. The council's inclusion of a UK House of Lords member signals cross-jurisdictional outreach. This outreach is critical as regions like the EU implement Markets in Crypto-Assets (MiCA) regulations.

Expert Commentary

The formation of this advisory council represents a calculated institutional move. It aims to preempt reactive regulation by engaging policymakers proactively. Similar to how the Commodity Futures Trading Commission shaped derivatives markets, this council could define Avalanche's regulatory trajectory. However, its impact on short-term price action will be minimal compared to macroeconomic factors like Federal Reserve policy.

— CoinMarketBuzz Intelligence Desk

Market Outlook & Price Scenarios

Market structure suggests two primary scenarios for AVAX following this news. The bullish scenario requires holding above the $9.80 support and breaking the $10.50 resistance. The bearish scenario involves a breakdown below support, targeting lower liquidity pools near $9.20.

• Bullish Invalidation Level: $10.50. A sustained break above this 50-day moving average resistance would confirm a shift in momentum, potentially targeting $11.20.
• Bearish Invalidation Level: $9.80. A daily close below this Fibonacci support would invalidate the current consolidation, opening a path to $9.20.

On-chain data indicates that the 12-month institutional outlook hinges on regulatory developments. If the council successfully advocates for favorable policies, AVAX could see reduced volatility and increased institutional inflows. This aligns with a 5-year horizon where regulatory maturity often precedes sustained asset appreciation. However, immediate price action remains tied to broader crypto market sentiment and macroeconomic indicators.