Bitcoin and major altcoins slipped as Washington signaled it could pull support for a landmark market structure bill, reviving uncertainty over how the United States will regulate digital assets.
The cryptocurrency market retreated over the weekend after the White House warned it may withdraw its backing for the CLARITY Act, a sweeping proposal meant to clarify how digital assets are regulated in the United States. The warning added fresh uncertainty to an industry that has spent years navigating shifting and often conflicting rules.
Bitcoin slipped to about $3,293, while Ethereum traded near $3,285. Total crypto market capitalization fell to roughly $3.2 trillion, and 24 hour trading volume dropped 25 percent to around $90 billion, reflecting a broad pullback as investors reassessed regulatory risk.
The move came as the Trump administration signaled frustration with the Market Structure Bill, commonly referred to as the CLARITY Act, which has stalled in the Senate ahead of markup. The White House said it could withdraw support for the legislation after Coinbase pulled its endorsement, a decision administration officials described as a rug pull against both policymakers and the wider crypto sector.
Officials said the administration does not believe a single company can speak for the entire industry and is pushing for renewed talks to reach a compromise that addresses concerns from both crypto firms and traditional financial institutions.
A fight over stablecoins and market structure
At the heart of the dispute is how the bill would reshape the rules governing digital assets, particularly stablecoins. Coinbase has argued that the proposed framework would restrict the rapidly growing stablecoin sector, which now holds more than $308 billion in assets, by removing the ability for crypto exchanges to pay interest on certain products.
Banks and credit unions have pushed back from the opposite direction. They warn that if stablecoins become more attractive than traditional deposits, customers could move money out of the banking system, reducing funds available for business lending and potentially harming the broader economy.
Despite Coinbase stepping away, other major crypto firms have continued to support the bill. Robinhood said the legislation would provide long sought regulatory clarity and allow it to expand staking services. Kraken, Ripple Labs and Galaxy have also expressed optimism that a finalized framework would bring the certainty needed for the industry to grow in the United States.
The CLARITY Act would be the most significant piece of crypto legislation since Congress passed the GENIUS Act in 2025, which established rules for stablecoin issuers, including reserve requirements and asset backing standards. While GENIUS focused narrowly on stablecoins, CLARITY is designed to define how oversight is divided between the Securities and Exchange Commission and the Commodity Futures Trading Commission, a long running source of regulatory tension.
Traders still see a path to passage
Even as prices slipped, many traders and analysts said the latest standoff looks more like a negotiating phase than a collapse of the bill. On Polymarket, a prediction market with $17,930 in active wagers, the odds of the legislation passing have climbed to 55 percent, up from a low of 40 percent earlier this month. Kalshi’s market places the probability that the bill becomes law before 2027 at 52 percent.
That cautious optimism reflects a broader view that Washington is under pressure to deliver clearer rules as crypto adoption continues to expand. Institutional investors, exchanges and payment firms have all said that uncertainty over whether assets fall under SEC or CFTC oversight has held back product launches and cross border investment.
For crypto users, the outcome will shape everything from which platforms can offer staking to how stablecoins are issued and used for payments. For regulators, it is a test of whether the United States can craft a framework that balances consumer protection with innovation, at a time when Europe and parts of Asia are already moving ahead with comprehensive digital asset rules.
For now, the White House warning has reminded markets how sensitive prices remain to regulatory signals. Until lawmakers resolve the standoff, traders appear likely to stay cautious, with policy risk once again driving sentiment across the crypto sector.
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