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The Clarity Act’s advance through the Senate Banking Committee gives crypto a clearer forward path, but the near-term market setup is being shaped by inflation, yields and Fed expectations.
The bill passed the committee by 15-9, moving it closer to a full Senate vote. The development is likely to matter most for tokenization, stablecoins and smart-contract platforms, where institutions have been waiting for clearer rules before expanding activity.
“The key structural development was the CLARITY Act clearing the Senate Banking Committee,” Bitwise senior research associate Kavi Jain told CoinDesk. “This is a landmark moment for US digital asset regulation and moves the market closer to a clearer framework for cryptoassets.”
Jain said the clearer framework should be “particularly supportive for tokenisation and smart contract platforms such as Ethereum and Solana,” enabling more institutional activity around stablecoins, tokenized funds and onchain capital markets.
The macro backdrop isn’t as supportive. April inflation data came in above expectations, with energy prices driving a large share of the increase as pressures related to the Iran war fed into the global economy. Markets now price a Fed rate increase by April 2027, Jain said, reversing the rate-cut expectations that dominated before the conflict.
Longer-dated Treasury yields show the same concern. The U.S. sold 30-year debt at a 5% yield for the first time since 2007. Higher interest rates make risky assets like bitcoin and other cryptocurrencies less attractive.
“This matters because inflation is particularly damaging for long duration assets, and higher long term yields suggest markets are no longer treating the energy shock as purely temporary,” Jain added.
The forward setup is split. Regulatory clarity is improving the case for onchain capital markets, while long-term yields make risk assets like bitcoin less attractive at a time when the AI trade’s momentum isn’t slowing down. Stay alert!
Read more: For analysis of today's activity in altcoins and derivatives, see Crypto Markets Today . For a comprehensive list of events this week, see CoinDesk's "Crypto Week Ahead."
What’s trending
- Thorchain halts trading after $10 million cross-chain exploit, RUNE token drops 12% (CoinDesk): The cross-chain liquidity protocol paused all trading and signing on Friday after an attacker drained roughly $10.8 million across Bitcoin, Ethereum, BSC and Base.
- Oil prices jump after Trump says China agreed to buy U.S. crude following Xi talks (CNBC):International benchmark Brent crude futures for July gained 3.25% to $104.46 a barrel. U.S. West Texas Intermediate futures advanced 2.11%.
- Strategy’s STRC stock logs record $1.5 billion trading volume, funds 11,707 bitcoin purchase (CoinDesk): Stretch (STRC), the perpetual preferred stock issued by Strategy (MSTR) recorded $1.53 billion in trading volume on Thursday, the most on record.
- Trump says he and China's Xi agree Iran cannot have nuclear weapons (CoinDesk): Trump said his patience with Iran was running out and that he had agreed in talks with Xi that Tehran could not be allowed to have a nuclear weapon and must reopen the Strait of Hormuz.
Today’s signal
The two-year Treasury yield, known to reflect short-term Fed interest-rate expectations, jumped to a 12-month high of over 4.05%.
The move triggered an inverse head-and-shoulders breakout, one of the most widely followed bullish patterns in technical analysis. The formation is characterized by a deep central trough flanked by two smaller, and relatively equal, troughs resembling an inverted head between two shoulders.
The pattern represents a gradual shift from bearish to bullish momentum, with the breakout above the neckline — the line connecting the interim recoveries between the troughs — confirming that the path of least resistance is now to the upside.
In short, the yield could continue to rise in the days ahead, potentially challenging the January 2025 high of 4.24%.
