Bitcoin and crypto prices have struggled to regain momentum in recent weeks despite the bitcoin price rebounding almost 30% from its lows as a Federal Reserve nightmare suddenly comes true.
Sign up now for —A free crypto newsletter that will get you ahead of the market
The bitcoin price briefly hit $76,000 in March, up from February lows of $60,000, though it remains far from its October peak of $126,000 (despite fears growing of a U.S. dollar collapse).
Now, as bitcoin and crypto hurtle toward Elon Musk’s April game-changer, U.S. president Donald Trump’s top crypto advisor has confirmed “a major milestone" has been hit.
Sign up now for the free —A daily five-minute newsletter for traders, investors and the crypto-curious that will get you up to date and keep you ahead of the bitcoin price and crypto market swings
“This is a major milestone toward passing the Clarity Act,” Patrick Witt, the executive director of the president’s council of advisors for digital assets, posted to X alongside a Politico report that said the White House and Senators have reached a deal to advance the crypto market structure bill known as the Clarity Act.
The Clarity Act, designed to establish a comprehensive regulatory framework for bitcoin and crypto and clarify oversight of crypto markets and participants, stalled in Congress when Coinbase chief executive Brian Armstrong torpedoed it by abruptly pulling the exchange’s support, claiming no deal would be better than a bad one.
Witt credited U.S. senators Thom Tillis (R-NC) and Angela Alsobrooks (D-MD) for “for bridging the partisan divide to tackle a difficult issue, adding that there is “more work to be done.”
“Senator Tillis and I do have an agreement in principle,” Alsobrooks told Politico. “We’ve come a long way. And I think what it will do is to allow us to protect innovation, but also gives us the opportunity to prevent widespread deposit flight.”
The Clarity Act’s progress through Congress came to an abrupt halt in January due to disagreements over whether crypto companies should be able to pay out yield on stablecoins held by users, with banks claiming this could trigger an exodus of deposits, potentially undermining the entire financial system.
Alsobrooks told Politico that the latest draft bill would seek to bar yield payments “on a passive balance.”
Sign up now for —A free crypto newsletter that will get you ahead of the market
The progress cheered speculators on the Polymarket prediction platform, with the odds of the bill being signed by U.S. president Donald Trump this year ticking up to 63%, up from February lows of less than 50% after Trump said he wouldn’t sign anything until the voter reform bill known as the Save America Act was passed by Congress.
Last month, U.S. Treasury secretary Scott Bessent said it’s “very important" that the crypto market structure bill known as the Clarity Act is passed—predicting this will help the bitcoin and crypto market recovery.
"I think some clarity on the Clarity bill would give great comfort to the market, and we could move forward from there,” Bessent told CNBC.
Earlier this month, the narrowing chances of the Clarity Act passing this year caused analysts with Wall Street giant Citi to slash their bitcoin price forecast, predicting that bitcoin won’t make a fresh all-time high over the next 12 months.