The cryptocurrency market showed clear signs of nervousness on Saturday as political uncertainty in Washington weighed on prices. Bitcoin and most major altcoins traded in the red after reports that the White House may withdraw its support for the CLARITY Act, a key piece of U.S. crypto legislation.
Bitcoin slipped slightly to around $3,293, while Ethereum hovered near $3,285. The broader market also felt the pressure, with the total crypto market capitalization falling to roughly $3.2 trillion. Trading activity cooled sharply, as 24-hour volume dropped by about 25% to $90 billion, highlighting a wait-and-watch mood among investors.
At the center of the uncertainty is the Market Structure Bill, commonly known as the CLARITY Act. The bill has stalled in the Senate ahead of its markup, prompting frustration within the Trump administration. According to reports, the White House is particularly unhappy with Coinbase, which recently pulled its support for the legislation. The move was described by the administration as a “rug pull” against both the White House and the broader crypto industry.
The administration has also made it clear that it does not view any single company as representing the entire crypto sector. As a result, officials are pushing for renewed discussions in an effort to strike a compromise that works for both the crypto industry and the traditional banking system.
Coinbase has defended its decision by arguing that the bill could hurt the rapidly expanding stablecoin market, which currently holds more than $308 billion in assets. The company believes the legislation would limit innovation by removing the ability of crypto exchanges to offer interest-related products tied to stablecoins.
Traditional financial institutions, including banks and credit unions, have their own concerns. They warn that if stablecoins become more attractive, customers could pull money out of bank deposits and move funds into crypto-based alternatives. In their view, this shift could reduce the amount of capital available for lending, potentially slowing economic activity.
Despite Coinbase stepping back, several major crypto firms continue to back the CLARITY Act. Robinhood has said the bill would bring much-needed regulatory clarity and enable it to expand staking services for users. Other industry players expressing support include Kraken, Ripple Labs, and Galaxy, all of which see the legislation as a step toward clearer rules of the road.
Market participants remain cautiously optimistic. Many traders believe the current delay is part of a broader negotiation process rather than a sign of failure. Prediction markets reflect this sentiment. A Polymarket poll with $17,930 in assets now gives the bill a 55% chance of passing, up from a low of 40% earlier this month. Meanwhile, Kalshi estimates a 52% chance that the bill becomes law before 2027.
If passed, the CLARITY Act would mark the most significant U.S. crypto legislation since the GENIUS Act of 2025, which set clear rules for stablecoin issuers. Unlike GENIUS, the CLARITY Act focuses on clearly dividing oversight responsibilities between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), a long-standing demand from the crypto industry.
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