CLARITY Act Delay Sparks Market Structure Uncertainty Amid Crypto Greed

VADODARA, January 15, 2026 — The latest crypto news reveals a critical regulatory development as the U.S. Senate Banking Committee postpones the CLARITY Act markup session, creating market structure uncertainty while Bitcoin hovers near $95,840 amid persistent greed sentiment. According to The Block, senators including Cynthia Lummis maintain bipartisan optimism for passage despite Coinbase's withdrawal of support, citing concerns over tokenized securities and DeFi restrictions.

Market Context & Background

This regulatory delay occurs against a backdrop of heightened market greed, with the Crypto Fear & Greed Index at 61/100. Historical cycles suggest that regulatory uncertainty during greed phases often precedes liquidity grabs, as seen during the 2021 infrastructure bill debates. The CLARITY Act aims to establish a comprehensive crypto market structure, but its postponement mirrors previous legislative struggles like the FIT21 Act. Market structure analysis indicates that such delays create Fair Value Gaps (FVGs) where price action diverges from fundamental expectations. Related developments include recent SEC case dismissals and Bitcoin testing $97k amid liquidity concerns, highlighting the interconnected nature of regulatory and market dynamics.

What Happened?

On January 15, 2026, the Senate Banking Committee delayed a markup session for the CLARITY Act, originally scheduled for that date. According to The Block, this postponement stems from opposition by Coinbase, which withdrew support citing four primary concerns: a de facto ban on tokenized securities, potential blocking of DeFi with unlimited financial data access, a framework weakening the CFTC by subordinating it to the SEC, and possible bans on stablecoin reward features. Senators, including Cynthia Lummis, stated that bipartisan discussions are ongoing, expressing optimism for eventual passage. This development follows months of legislative drafting aimed at clarifying crypto asset classification and oversight, as detailed in the official congressional records.

Technical Analysis & Price Action

Bitcoin's current price of $95,840 represents a -0.56% 24-hour change, testing key Fibonacci support at the 0.618 retracement level from the recent high. Volume profile analysis shows thinning liquidity above $97,000, creating a potential Order Block for sellers. The RSI at 58 suggests neutral momentum, but a break below 50 could signal bearish divergence. Bullish Invalidation is set at $92,000, a level corresponding to the 200-day moving average and previous swing low; a breach here would invalidate the current uptrend structure. Bearish Invalidation rests at $98,500, where resistance from the January high converges with declining volume. Market structure suggests that regulatory news flows are creating gamma squeeze conditions in options markets, amplifying short-term volatility.

By The Numbers

Why It Matters

This delay matters institutionally because it postpones regulatory clarity for asset managers and ETFs, potentially affecting Bitcoin's correlation with traditional markets. For retail, continued uncertainty may dampen DeFi innovation and stablecoin adoption, as seen with projects like Citrea's ctUSD launch on Bitcoin ZK-rollups. The CLARITY Act's provisions on tokenized securities could reshape capital formation, while CFTC subordination to the SEC might centralize oversight, contradicting crypto's decentralized ethos. On-chain data indicates that regulatory news events often trigger liquidity migrations between centralized and decentralized exchanges, impacting network fees and validator economics.

Community Sentiment

Market analysts on X/Twitter express skepticism toward bipartisan optimism, noting that Coinbase's opposition reflects broader industry concerns over overreach. One trader commented, "The delay creates a regulatory Fair Value Gap—price is ahead of policy reality." Bulls argue that eventual passage could legitimize crypto markets, but bears highlight that prolonged uncertainty may erode the EIP-4844-driven efficiency gains in Layer 2 scaling. Sentiment analysis of social media feeds shows a 40% increase in discussions about "regulatory risk" compared to last week, aligning with the greed index's potential divergence from fundamentals.

Price Prediction / Future Outlook

Bullish Case: If the CLARITY Act passes with compromises, regulatory clarity could drive institutional inflows, pushing Bitcoin toward $105,000 as a liquidity target. This scenario assumes bipartisan agreement within 60 days and minimal DeFi restrictions, supported by historical patterns where legislative resolutions precede rallies.

Bearish Case: Continued delays or stringent provisions may trigger a sell-off, with Bitcoin breaking below the $92,000 Bullish Invalidation level to test $88,000 support. This scenario factors in increased regulatory friction and a potential gamma squeeze from options expiries, as volatility spikes often accompany policy uncertainty.