The United States Senate is preparing for a final vote on the GENIUS Act this Tuesday, and the outcome may significantly impact the cryptocurrency market. The bill is designed to regulate payment stablecoins through a federal framework and strengthen consumer protection measures within the digital asset space.
With the crypto market edging toward a potential breakout, analysts in the industry reckon that the GENIUS Act would be a critical catalyst. One leading crypto analyst notes that should the bill be passed, it will make it clear to any institutional investors to enter the market and likely bring increased liquidity to the market, provisioning a rise in the prices of all assets.
Most market indicators indicate that they are converging a little short of critical resistance points in their digital assets. The lack of precise regulation has been one of the ingredients that have been lacking in ensuring greater institutional involvement, as the analyst highlighted. The decision in the Senate may serve as a stepping stone to enhanced selling waves in the market with the GENIUS Act filling it.
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Crypto users have repeatedly voiced concerns about unclear regulation in the U.S. The GENIUS Act would assist crypto practitioners in operating in a more given environment, where they have full concerns about operating within a certain standard and acknowledged legal system. This would help mitigate possible enforcement action and assuage the fear of abrupt regulatory action.
Fed Rate Decision and Other Key Factors Add Pressure
Beyond the Senate vote, this week holds other critical events that could influence the crypto market. The Federal Reserve is expected to release its interest rate decision on Wednesday, drawing intense attention from financial markets.
Even though analysts project no rate decrease, investors are keenly listening to the statement of Fed Chair Jerome Powell to get hints. These remarks will be closely reviewed to tell whether the central bank is more dovish or hawkish than expected.
Moreover, an analyst noted some important technical indicators, such as the Ethereum whale actions and XRP rally signs. Moving average patterns on the total crypto market cap also indicate a potential surge, given the forthcoming macro and regulatory events.
With the GENIUS Act vote and the Federal Reserve update happening within days, crypto market participants are bracing for significant developments. The combination of regulatory clarity and economic signals could determine whether the market finally breaks out of its current range.
Also Read: Dormant Ethereum Whales Awaken, Dump Millions in ETH as Prices Crash
