US Senate Banking Committee Postpones Crypto Market Structure Bill Markup

VADODARA, January 15, 2026 — The U.S. Senate Banking Committee has postponed a planned markup of the cryptocurrency market structure bill, known as the Clarity Act, following Coinbase's withdrawal of support. This latest crypto news was reported on X by Eleanor Terrett, host of Crypto in America, and signals a significant setback for legislative clarity in digital asset markets. Market structure suggests this delay could create a regulatory Fair Value Gap (FVG), where price action may diverge from fundamental value until policy direction is resolved.

Market Context & Background

This development occurs against a backdrop of intensifying Bitcoin dominance and fragmented global regulatory approaches. Historical cycles indicate that U.S. legislative delays often correlate with increased market volatility, as seen during the 2021-2023 period when similar postponements led to liquidity grabs in altcoin markets. Underlying this trend is the structural tension between innovation and compliance, a dynamic that has persisted since the inception of major cryptocurrencies. The Clarity Act aimed to define jurisdictional boundaries between the SEC and CFTC, a move critical for reducing regulatory arbitrage. Consequently, its postponement extends the period of uncertainty, potentially affecting capital allocation decisions. Related developments include the analysis of Coinbase's withdrawal impact and the plunge in the Altcoin Season Index to 29, highlighting broader market concentration.

What Happened?

According to the report from Eleanor Terrett, the Senate Banking Committee was scheduled to mark up the Clarity Act, a bill designed to establish a clear regulatory framework for digital assets. However, following Coinbase's public withdrawal of support, the committee decided to postpone the session. This decision effectively stalls legislative progress, as markup is a critical step where amendments are debated and the bill is shaped for a full vote. On-chain data indicates that such regulatory events often trigger short-term sentiment shifts, though the immediate price impact may be muted by broader macroeconomic factors. The Federal Reserve's monetary policy stance, as detailed on FederalReserve.gov, remains a primary driver, with current rates influencing liquidity conditions more directly than pending legislation.

Technical Analysis & Price Action

Market structure suggests Bitcoin is currently testing a key Order Block near $96,421, with the 50-day moving average providing dynamic support. The Relative Strength Index (RSI) sits at 58, indicating neutral momentum, but a break below 50 could signal bearish divergence. Volume Profile analysis shows significant liquidity clusters between $92,000 and $98,000, making this zone critical for near-term direction. Bullish Invalidation is set at $92,000; a sustained break below this level would invalidate the current uptrend structure and target lower supports. Bearish Invalidation is at $100,000, where a breakout could trigger a Gamma Squeeze as options positions are forced to cover. This technical setup mirrors patterns observed during previous regulatory uncertainties, where price action consolidated within defined ranges until clarity emerged.

By The Numbers

Why It Matters

This postponement matters because it delays the establishment of a coherent U.S. regulatory framework, perpetuating market fragmentation. For institutions, the lack of clarity complicates compliance strategies and may slow adoption, as seen in previous cycles where deferred legislation correlated with reduced institutional inflows. Retail traders face increased uncertainty, potentially leading to heightened volatility in altcoins, which are more sensitive to regulatory news. The structural impact is akin to a liquidity grab, where capital may shift to jurisdictions with clearer rules, such as those outlined in the EU's MiCA framework. Consequently, the delay could exacerbate the divergence between U.S. and global crypto markets, affecting long-term capital formation.

Community Sentiment

Market analysts on X express cautious pessimism, noting that Coinbase's withdrawal reflects broader industry concerns about the bill's provisions. Bulls argue that postponement allows for refinement, potentially leading to stronger legislation, while bears highlight the risk of prolonged inaction. Sentiment analysis from social platforms indicates a neutral-to-bearish tilt, with keywords like "delay" and "uncertainty" trending. However, this is tempered by macro stability signals, such as the Bank of Korea's rate hold at 2.50%, which supports global liquidity conditions.

Price Prediction / Future Outlook

Bullish Case: If regulatory clarity emerges within 3 months, Bitcoin could break above $100,000, targeting Fibonacci extensions near $110,000. This scenario assumes the Clarity Act is revised favorably, triggering institutional inflows and reducing regulatory risk premiums. Market structure suggests a rally would be supported by on-chain accumulation patterns and positive macro cues.

Bearish Case: A prolonged delay beyond 6 months could lead to a breakdown below $92,000, testing the 200-day moving average near $85,000. This would reflect increased regulatory uncertainty, potentially causing capital outflows and altcoin underperformance. Historical data indicates such scenarios often result in consolidation phases until policy direction is resolved.