Senator Scott Rejects Trump Crypto Ethics Rule in Market Structure Bill

VADODARA, January 14, 2026 — Senate Banking Committee Chairman Tim Scott has publicly rejected attempts to insert an ethics provision targeting former President Donald Trump's cryptocurrency business into the pending Digital Asset Market Clarity Act. This breaking crypto news comes just days before the committee's scheduled vote on Thursday, creating immediate uncertainty around the bill's final form and timeline.

Market Context & Background

Market structure suggests regulatory developments have become the primary driver of crypto volatility in 2026, surpassing traditional macroeconomic factors. The Digital Asset Market Clarity Act represents the most comprehensive U.S. legislative attempt to establish clear rules for cryptocurrency exchanges, custody providers, and token classification since the 2021 infrastructure bill debates. Historical cycles indicate that regulatory uncertainty typically creates a Fair Value Gap (FVG) between spot prices and institutional valuation models, with the current gap estimated at 8-12% across major assets. This development occurs alongside other significant market shifts, including the FTX creditor repayment schedule affecting market liquidity and growing institutional demand evidenced by the BitGo IPO oversubscription.

What Happened?

According to an interview with CoinDesk, Senator Scott stated that inserting an ethics provision specifically targeting President Trump's crypto business would be "inappropriate" for the market structure legislation. He argued this debate falls outside the Banking Committee's jurisdiction and should be handled separately by the Senate Ethics Committee. While acknowledging discussions are possible, Scott emphasized that adding the provision to the current bill "would be more difficult than expected." The committee is scheduled to vote on the Digital Asset Market Clarity Act this Thursday, creating a tight timeline for resolution.

Technical Analysis & Price Action

On-chain data indicates Bitcoin's current price of $97,203 sits within a critical Order Block between $94,200 and $99,800. The 20-day exponential moving average at $95,400 provides immediate support, while the 50-day simple moving average at $91,800 represents a stronger structural level. Market structure suggests a Bullish Invalidation level at $94,200—a breach would indicate institutional selling pressure outweighing regulatory optimism. Conversely, a Bearish Invalidation level sits at $99,800, where sustained trading above would confirm breakout momentum. The RSI at 54 shows neutral momentum, but volume profile analysis reveals declining participation during recent rallies, suggesting cautious positioning ahead of the Thursday vote.

By The Numbers

Why It Matters

For institutional investors, this jurisdictional dispute creates timeline uncertainty for the comprehensive regulatory framework many require for full-scale deployment. According to the SEC's official guidance, clear market structure rules would reduce compliance costs by an estimated 30-40% for registered entities. Retail traders face increased volatility as political narratives intersect with technical levels, potentially creating Liquidity Grab scenarios around key price points. The separation of ethics debates from market structure legislation could either accelerate the bill's passage or create parallel legislative tracks that delay final implementation.

Community Sentiment

Market analysts on X/Twitter express divided views. Regulatory optimists argue that "keeping the bill clean increases passage probability by 60%," while skeptics counter that "political entanglement was inevitable given Trump's crypto holdings." Derivatives traders note increased put option volume at the $94,200 strike, suggesting hedging against downside risk. No prominent industry leaders have commented directly on Scott's statement, indicating cautious positioning ahead of the vote.

Price Prediction / Future Outlook

Bullish Case: If the committee votes on a clean bill Thursday, market structure suggests a retest of the $99,800 resistance with potential breakout toward $102,500. This scenario assumes institutional accumulation continues at current levels, with on-chain metrics showing stablecoin reserves sufficient for a 15-20% rally.

Bearish Case: If ethics provisions create legislative delay or dilution, technical analysis indicates a likely test of the $91,800 50-day moving average. Extended uncertainty could trigger a Gamma Squeeze in options markets, with maximum pain currently positioned at $95,000. A break below $94,200 would invalidate the current bullish structure and target $88,500 support.