The cryptocurrency market remained under pressure Saturday as the White House warned it could withdraw support for the proposed CLARITY Act, injecting new uncertainty into U.S. crypto regulation.
Bitcoin slipped to around $63,293, while Ethereum fell to about $3,285. The total market capitalization of digital assets declined to roughly $3.2 trillion, and 24-hour trading volume dropped about 25% to $90 billion, reflecting reduced risk appetite among traders.
The pullback followed reports that the Trump administration is reconsidering its backing of the CLARITY Act, a sweeping market structure bill that has stalled in the Senate ahead of markup. Administration officials are reportedly frustrated after Coinbase withdrew its support for the legislation, viewing the move as a reversal that undermines negotiations with lawmakers and regulators.
The White House has also signaled concern that no single company should be seen as representing the entire crypto industry. Officials are now pushing for renewed discussions aimed at reaching a compromise acceptable to both the crypto sector and traditional financial institutions.
Coinbase has argued that the bill, as currently written, could harm the rapidly growing stablecoin market, which now holds more than $300 billion in assets, by restricting crypto platforms from paying interest. Banks and credit unions, meanwhile, have warned that such changes could accelerate deposit outflows, limiting funds available for lending and potentially weighing on the broader economy.
Despite Coinbase’s reversal, several major crypto firms continue to support the legislation. Robinhood has said the bill would provide long-needed regulatory clarity and enable it to expand staking services. Other industry players, including Kraken, Ripple Labs, and Galaxy, have also expressed optimism.
Many traders and analysts remain confident the legislation will ultimately pass, viewing the current standoff as part of a broader negotiating strategy. Prediction market data shows modestly better-than-even odds that the bill will eventually become law, with expectations improving from earlier lows this month.
If enacted, the CLARITY Act would represent the most significant U.S. crypto legislation since the 2025 passage of the GENIUS Act, which established rules for stablecoin issuers and reserve requirements. Unlike GENIUS, the CLARITY Act is focused on defining regulatory responsibilities between the Securities and Exchange Commission and the Commodity Futures Trading Commission, a move supporters say would bring long-sought clarity to the digital asset market.