Crypto market cheers after U.S. Senate committee passes Clarity Act; Bitcoin reclaims $80K

Cryptocurrency markets rallied on Friday after the U.S. Senate Banking Committee approved the Clarity Act, a long-awaited bill aimed at creating a formal regulatory framework for digital assets in the United States, boosting investor confidence across major tokens.

The global crypto market capitalisation rose nearly 2% over the past 24 hours to around $2.7 trillion following the committee’s approval of the legislation, which is widely seen as a major step toward regulatory clarity for the industry.

Market participants viewed the development as a positive signal for institutional adoption and long-term growth of the digital asset ecosystem.

Bitcoin, the world’s largest cryptocurrency, climbed more than 2% over the past 24 hours to trade around $80,944, pushing its market capitalisation to nearly $1.63 trillion. Ethereum, the second most valued crypto asset, also gained over 1% to around $2,268, while XRP surged more than 4% in the past day.

Among major gainers, Dogecoin rose nearly 3% in 24 hours, while Hyperliquid emerged as one of the strongest performers, jumping more than 20%.

Despite the rebound, the total crypto market capitalisation remains well below its yearly peak of $4.28 trillion recorded in October 2025, though it has recovered sharply from the February 2026 low of $2.17 trillion.

U.S. Senate approves Clarity Act

The U.S. Senate Banking Committee on Thursday approved the Clarity Act, marking one of the most significant legislative advances for digital assets in recent years.

The bill, titled as the Digital Asset Market Clarity Act of 2025, was cleared by a 15-9 vote, largely along party lines, with all Republican members supporting the measure and joined by Democratic Senators Ruben Gallego of Arizona and Angela Alsobrooks of Maryland. The legislation now moves to the Senate floor for further consideration.

The Clarity Act seeks to define clear regulatory boundaries for the rapidly evolving crypto sector, addressing long-standing uncertainty over jurisdiction between U.S. financial regulators. Under the proposed framework, the Commodity Futures Trading Commission (CFTC) would assume primary oversight of much of the digital asset market, while the Securities and Exchange Commission (SEC) would continue to regulate tokens and assets classified as securities.

The development marks a key political win for the cryptocurrency industry, which has been seeking clearer rules to support institutional adoption and long-term growth.

What does it mean for crypto traders?

Nischal Shetty, founder of WazirX, said the Clarity Act clearing the Senate Banking Committee is “good news for anyone who holds or trades crypto.”

“For years, exchanges operating in the US did not know which regulator they answered to. Both the SEC and the CFTC claimed authority over the same assets, with no clear boundary between them. Platforms caught between them could not build products with confidence. Institutions stayed out. That is what held the market back, not a lack of interest,” Shetty said.

He added that a clearly defined regulatory structure would allow exchanges to focus more on innovation and product development instead of navigating legal ambiguity.

“When platforms can operate inside a defined framework, users get better products and more institutional participation. Exchanges stop spending legal budget on jurisdictional ambiguity and start spending it on the product,” he explained.

Shetty also said the U.S. framework could have implications for India’s digital asset ecosystem, where millions of investors participate in virtual digital assets despite the absence of a comprehensive regulatory structure.

“For Indian users, this is a positive development. India has millions of VDA holders and no comprehensive framework exists currently. The US resolving this gives Indian policymakers a working reference model along with other existing frameworks such as MiCA,” he said.