US Senate Banking Committee Begins Markup of CLARITY Crypto Bill Amid Market Fear

VADODARA, January 29, 2026 — The U.S. Senate Banking Committee has initiated its markup session for the CLARITY Act, a landmark crypto market structure bill. This latest crypto news arrives as Bitcoin trades at $84,714, down 5.24% in 24 hours, with the Crypto Fear & Greed Index registering a score of 26/100. According to Eleanor Terrett, host of Crypto in America, the committee's action marks a critical step toward legislative clarity.

Investigation: The CLARITY Act Markup Session

The Senate Banking Committee began its markup of the CLARITY Act on January 29, 2026. This process involves detailed line-by-line review and amendment of the proposed legislation. The bill aims to establish a comprehensive regulatory framework for digital assets. Market structure suggests this markup could last several weeks. It precedes potential floor votes in the Senate.

Historical cycles indicate regulatory milestones often coincide with market volatility. The committee's action follows months of legislative drafting and hearings. According to the official U.S. Senate website, markup sessions are standard procedure for major financial bills. This step formalizes the legislative text before broader congressional consideration.

Market Context & Historical Precedent

Market context reveals a pattern. Regulatory developments frequently trigger short-term price dislocations. Similar to the 2021 correction following China's mining ban, current fear sentiment reflects uncertainty. The CLARITY Act seeks to resolve jurisdictional conflicts between the SEC and CFTC. This mirrors the 2024 debates over Ethereum's security status.

In contrast, the 2023 market rally followed the approval of spot Bitcoin ETFs. Consequently, this markup represents the next institutional gateway. Underlying this trend is a shift from regulatory ambiguity to defined rules. The bill's progress could influence capital allocation decisions by asset managers. Related developments include recent regulatory shifts signaled by the SEC Chairman and DePIN market growth amid fear.

Technical Architecture & Price Action

Technical architecture shows Bitcoin testing key levels. The current price of $84,714 sits below the 50-day moving average. A Fair Value Gap (FVG) exists between $88,000 and $90,000. This zone acts as immediate resistance. Support clusters around the 200-day moving average near $82,000.

On-chain data indicates increased exchange inflows. This suggests potential selling pressure. The Relative Strength Index (RSI) reads 38, approaching oversold territory. Volume profile shows thinning liquidity below $80,000. A break of the 200-day MA could trigger a cascade. Fibonacci retracement levels from the 2025 high place 0.618 support at $81,500.

By The Numbers

Why It Matters

This markup matters for institutional adoption. Clear rules reduce compliance overhead for TradFi entrants. Market structure suggests regulatory certainty precedes capital inflows. The CLARITY Act could define custody, trading, and issuance standards. This impacts everything from Bitcoin ETFs to DeFi protocols.

Real-world evidence shows correlation. The 2024 ETF approvals unlocked billions in AUM. Similarly, this bill could legitimize crypto for pension funds and insurers. Retail market structure often follows institutional lead. Consequently, clarity may reduce volatility over the 12-month horizon. It addresses the "regulatory gap" cited in many Federal Reserve reports.

Expert Commentary

"The CLARITY Act markup is a technical necessity for market maturation. Historical analogs like the Commodity Exchange Act of 1934 show that defined frameworks reduce systemic risk. Current price action reflects short-term uncertainty, but the 5-year horizon favors structured environments." — CoinMarketBuzz Intelligence Desk

Market Outlook & Price Scenarios

Market outlook hinges on technical levels and legislative progress. Two data-backed scenarios emerge from current structure.

• Bullish Invalidation Level: $90,000. A break above this resistance, filling the FVG, would confirm a trend reversal and suggest the market has priced in regulatory clarity.
• Bearish Invalidation Level: $82,000. A sustained break below the 200-day moving average invalidates the current structure, potentially leading to a test of $78,000 support.

The 12-month institutional outlook depends on bill passage. If enacted, CLARITY could spur ETF expansions and new product launches. This aligns with the 5-year horizon of increasing institutional allocation. Conversely, delays may prolong the current fear sentiment and liquidity constraints.