
XRP gives back gains after Senate crypto bill sparks 5% rally
XRP retreats after a 5% rally as Senate's CLARITY Act discussions loom.

The Clarity Act has advanced through the Senate Banking Committee, passing 15-9, potentially paving the way for clearer regulations in the crypto market. This development is expected to boost institutional activity in tokenization, stablecoins, and smart contract platforms.
Mentioned in this story
This is an excerpt from CoinDesk newsletter 'Daybook.' Sign up here, if you haven't already.
The Clarity Act’s advance through the Senate Banking Committee gives crypto a clearer forward path, but the near-term market setup is being shaped by inflation, yields and Fed expectations.
The bill passed the committee by 15-9, moving it closer to a full Senate vote. The development is likely to matter most for tokenization, stablecoins and smart-contract platforms, where institutions have been waiting for clearer rules before expanding activity.
“The key structural development was the CLARITY Act clearing the Senate Banking Committee,” Bitwise senior research associate Kavi Jain told CoinDesk. “This is a landmark moment for US digital asset regulation and moves the market closer to a clearer framework for cryptoassets.”
Jain said the clearer framework should be “particularly supportive for tokenisation and smart contract platforms such as Ethereum and Solana,” enabling more institutional activity around stablecoins, tokenized funds and onchain capital markets.
The macro backdrop isn’t as supportive. April inflation data came in above expectations, with energy prices driving a large share of the increase as pressures related to the Iran war fed into the global economy. Markets now price a Fed rate increase by April 2027, Jain said, reversing the rate-cut expectations that dominated before the conflict.
Longer-dated Treasury yields show the same concern. The U.S. sold 30-year debt at a 5% yield for the first time since 2007. Higher interest rates make risky assets like bitcoin BTC$80,593.96 and other cryptocurrencies less attractive.
“This matters because inflation is particularly damaging for long duration assets, and higher long term yields suggest markets are no longer treating the energy shock as purely temporary,” Jain added.
The forward setup is split. Regulatory clarity is improving the case for onchain capital markets, while long-term yields make risk assets like bitcoin less attractive at a time when the AI trade’s momentum isn’t slowing down. Stay alert!
Read more: For analysis of today's activity in altcoins and derivatives, see Crypto Markets Today . For a comprehensive list of events this week, see CoinDesk's "."
The Clarity Act aims to provide a clearer regulatory framework for digital assets, which is crucial for fostering institutional investment and activity in the crypto space.
The Clarity Act passed the Senate Banking Committee with a vote of 15-9, moving closer to a full Senate vote.
The Clarity Act is expected to support tokenization and smart contract platforms like Ethereum and Solana, encouraging more institutional participation in these areas.
Current market conditions are influenced by inflation, yields, and Federal Reserve expectations, which are shaping the near-term setup for crypto regulations.

XRP retreats after a 5% rally as Senate's CLARITY Act discussions loom.

Dogecoin and Bitcoin face resistance at their 200-day moving averages, indicating a technical deadlock.

Bitcoin Struggles Above $80K Amid Institutional Sell-Offs and Rising Yields

XRP surges as the most traded crypto on Upbit, signaling a major shift in the market.

Learn how to swap Monero (XMR) securely using StealthEX.

Dune Analytics lays off 25% of staff to focus on AI and institutional crypto.
See every story in Crypto — including breaking news and analysis.

U.S. two-year treasury yield. (CoinDesk)
The two-year Treasury yield, known to reflect short-term Fed interest-rate expectations, jumped to a 12-month high of over 4.05%.
The move triggered an inverse head-and-shoulders breakout, one of the most widely followed bullish patterns in technical analysis. The formation is characterized by a deep central trough flanked by two smaller, and relatively equal, troughs resembling an inverted head between two shoulders.
The pattern represents a gradual shift from bearish to bullish momentum, with the breakout above the neckline — the line connecting the interim recoveries between the troughs — confirming that the path of least resistance is now to the upside.
In short, the yield could continue to rise in the days ahead, potentially challenging the January 2025 high of 4.24%.
