Why Is Ethereum Jumping Today?

By Johnny Rice | January 14, 2026, 5:30 PM

Key Points

  • U.S. senators introduced draft legislation establishing a clear regulatory framework for crypto.

  • As the dominant blockchain for decentralized finance and tokenization, Ethereum stands to benefit disproportionately from regulatory clarity.

Ethereum (CRYPTO: ETH) is up 5.4% in the last 24 hours as of 4:43 p.m. ET, moving higher as the stock market fell. Wednesday's trading saw the S&P 500 drop 0.6% and the tech-heavy Nasdaq Composite lose 1%.

Ethereum is continuing to gain after U.S. senators released draft legislation late Monday establishing a regulatory framework for the crypto industry.

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The draft bill aims to clarify regulatory jurisdiction over digital assets and comes after a brutal end of 2025 that saw Bitcoin plunge from $126,000 in October to $88,000 by the end of the year, driven by heavy selling from long-term holders.

Ethereum coins.

Image source: Getty Images.

Ethereum's blockchain is one of the most popular networks supporting decentralized finance (defi) and tokenization, so it is particularly sensitive to frameworks governing digital assets and could benefit greatly if the draft bill -- or something like it -- becomes law.

It's still a shaky time in the crypto market

Though Ethereum stands out among cryptocurrencies, providing clear use cases, an established track record, and widespread adoption, don't mistake its relative stability for safety. Ethereum is still a risky asset. But for more risk-tolerant investors with a long investment horizon and a well-diversified portfolio, Ethereum is a solid pick.

Should you buy stock in Ethereum right now?

Before you buy stock in Ethereum, consider this:

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Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Ethereum. The Motley Fool has a disclosure policy.

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