Crypto Bill: Galaxy Research Warns of Remaining Regulatory Hurdles
Analysis
Price Impact
LowThe news concerns potential regulatory hurdles for stablecoins, which could affect their long-term stability and adoption. however, the immediate price impact on major stablecoins like usdt and usdc is likely to be low as they are already widely adopted and perceived as relatively stable.
Trustworthiness
HighPrice Direction
NeutralWhile potential regulatory challenges could introduce bearish pressure in the long term, the current news focuses on the legislative process and potential hurdles rather than direct negative events impacting stablecoins. this keeps the price direction neutral in the short term.
Time Effect
LongRegulatory developments, especially concerning stablecoins, tend to have a long-term impact on the crypto market as they shape the future landscape of digital assets and their integration into traditional finance.
Original Article:
Article Content:
Cover image via x.com A much-needed compromise Hidden hurdles Advertisement A much-anticipated tentative agreement on stablecoin rewards has breathed new life into the stalled CLARITY Act. However, industry experts are warning that the landmark cryptocurrency legislation still faces a ticking clock and a minefield of unresolved issues. Last week, key lawmakers and the White House reached an "agreement in principle" to resolve the much-talked-about clash between traditional banks and the digital asset industry. HOT Stories $15 XRP? Ripple CTO Emeritus Responds to Critic With Surprise Take Crypto Market Review: 3 Key XRP Levels Just Collided, Critical Shiba Inu (SHIB) Test for Upcoming Resistance, Ethereum (ETH) Might Lose $2,000 Next Week However, according to Alex Thorn, head of firmwide research at Galaxy Digital, the crypto industry should hold off on celebrating (at least for now). Advertisement A much-needed compromise Since January, the CLARITY Act has been stalled in the Senate Banking Committee. This was due to a standoff over stablecoin rewards offered by exchanges. Traditional Wall Street groups have lobbied heavily against them. You Might Also Like Wed, 06/18/2025 - 07:49 Ripple CEO Reacts to Passage of Stablecoin Bill By Alex Dovbnya Advertisement Their key argument is that earning it would trigger widespread "deposit flight" from standard bank accounts. On Friday, March 20, Senator Thom Tillis (R-N.C.) and Senator Angela Alsobrooks (D-Md.) announced a tentative deal with White House officials to resolve the issue. Patrick Witt, a top White House crypto policy adviser, praised the bipartisan effort on X, calling it a "major milestone toward passing the CLARITY Act." Hidden hurdles The stablecoin agreement is a massive step forward, but has warned that the stablecoin dispute may simply be the "current hill the bill is dying on," asnd other disagreements have to be taken into account as well. If the stablecoin rewards issue is fully resolved, Thorn pointed out several other highly contentious topics, including DeFi regulation, developer protections, SEC powers, and ethics rules. Thorn emphasized that the window for passing comprehensive crypto legislation this year is rapidly closing. "If CLARITY doesn't pass committee by the end of April, odds of passage in 2026 become extremely low," Thorn warned. "This needs to hit the Senate floor by early May... floor time is running out and odds diminish every day that passes."