Quick overview

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A key driver behind the renewed optimism in crypto markets appears to be progress in the U.S. Senate on the Clarity Act, a pivotal piece of legislation for the digital asset industry. That said, the bill still needs approval from the House of Representatives.

Cryptocurrencies are extending the upward momentum seen at the start of the week. Bitcoin is trading around $81,000—its highest level since late January—after gaining 1.2% on the day. Ethereum, meanwhile, is slightly lower, down 0.6% to $2,388. Among altcoins, the strongest performers include Dogecoin (+2.6%), Tron (+0.8%), and Solana (+0.7%).

Bitcoin’s move comes amid a fragile ceasefire between the U.S. and Iran, with upcoming U.S. earnings and labor market data seen as potential catalysts for increased volatility in the world’s leading cryptocurrency.

The rally is being supported by a meaningful rebound in institutional demand. U.S.-listed spot Bitcoin ETFs recorded $532 million in inflows on Monday, marking a third consecutive day of positive flows and reinforcing the strength of the move.

From a technical standpoint, she highlighted the $83,400 level—where the 200-day moving average sits—as the key threshold to watch. A sustained break above that level could strengthen the case for continued upside.

Clarity Act Gains Momentum

Republican Senator Thom Tillis and Democratic Senator Angela Alsobrooks have reached a compromise on one of the most contentious aspects of the Clarity Act: the treatment of stablecoin yields.

The agreement would prohibit stablecoins from offering interest comparable to bank deposits, while allowing exceptions for rewards tied to “genuine activities or transactions.” These incentives would resemble loyalty or rewards programs commonly used by financial institutions in the credit card space, rather than traditional interest-bearing products.

The proposal also directs the Treasury Department and the Commodity Futures Trading Commission to establish, within one year of enactment, a non-exhaustive list of permitted activities.

In contrast to earlier drafts, the updated text has already received backing from major industry players such as Coinbase and Circle, according to CoinDesk. Expected inclusions in the permitted activities list range from payments and transfers to market-making, staking, governance tokens, and loyalty programs.

However, a timeline for a House vote has yet to be confirmed.