Coinbase (NASDAQ:COIN) CEO Brian Armstrong has withdrawn support for the proposed Crypto Clarity Act, citing fundamental flaws in the legislation. Some market participants see the development as a net positive for cryptocurrencies.
What Happened: The Clarity Act has drawn heavy criticism across the crypto industry, with opponents arguing it attempts to centralize and control digital assets under the banner of consumer protection. Critics say the bill favours banks and financial incumbents at the expense of decentralized finance.
Key concerns include a proposed ban on tokenized equities, strict limitations on DeFi that could undermine financial privacy, a shift in regulatory power away from the CFTC toward the SEC, and potential amendments that could severely restrict stablecoins, particularly yield-generating models.
Trader and analyst Michael van de Poppe said the bill's collapse is bullish, arguing that passing the Clarity Act in its current form would have been far more damaging to crypto markets than having no legislation at all.
With the Senate Banking Committee postponing further discussion, negotiations are expected to continue behind closed doors, increasing the odds of a more balanced framework later, like Europe's lengthy MiCA process. Currently, the removal of immediate regulatory overhang is being viewed as a boost to market sentiment
Why It Matters: From a macro and market perspective, van de Poppe expects capital rotation from commodities into crypto. Gold, after breaking all-time highs, is showing signs of weakness, while Bitcoin (CRYPTO: BTC) has begun strengthening against gold for the first time since mid-2025.
Technically, Bitcoin has reclaimed key moving averages, broken major resistance levels, and shifted back into an uptrend. Van de Poppe sees a move toward the $100,000–$105,000 range as likely, even if short-term pullbacks occur along the way.
Ethereum (CRYPTO: ETH) is also starting to outperform Bitcoin after months of relative weakness, a shift that often precedes increased volatility and upside in the broader altcoin market. Altcoins as a group have reclaimed important moving averages, suggesting a transition into a new uptrend phase.
Van de Poppe believes this environment favours holding or accumulating risk assets. While his own altcoin portfolio is already fully allocated, he argues that the failed Clarity Act, combined with improving technical structures across crypto markets, points to a bullish setup going forward.
