Bitcoin, Ethereum, XRPHit by CLARITY Act 'Setback,' Fed Hike: What's Next?

Bitcoin (CRYPTO: BTC) dropped below $76,000 as Ethereum (CRYPTO: ETH), Solana (CRYPTO: SOL) and Dogecoin (CRYPTO: DOGE) and XRP (CRYPTO: XRP) struggle to hold key levels after the Senate failed to advance the CLARITY Act and the Federal Reserve raised interest rates by 25 basis points.

Cryptocurrency market analyst Ray Salmond said that the legislative “setback” is unlikely to derail crypto’s broader growth and adoption.

Why Is The Failure Is A ‘Setback,’ Not A ‘Derailment‘

Salmond argued in a Schwab Network interview on Wednesday that the regulatory story now shifts from legislation to rule making.

The SEC and CFTC are positioned to fill part of the regulatory void after the CLARITY Act failed to advance.

However, industry executives and analysts have cautioned that agency rules may be more vulnerable to political changes and legal challenges than legislation passed by Congress.

Salmond expects regulators to continue moving forward regardless of whether the Clarity Act returns next year or later.

That could keep Wall Street’s crypto expansion moving.

He added that a clearer framework like the CLARITY Act would give U.S. crypto companies stronger legal footing while making it easier for offshore firms to re-headquarter in the U.S., raise capital and integrate with TradFi.