There are big moves happening in the U.S.! The White House crypto chief said that the (CLARITY Act) will be submitted for Senate debate and voting next month. If this act passes, it would essentially draw a red line for the U.S. cryptocurrency space. Many influencers have already started calling it a 'bull market warm-up', but I advise you to stay calm, as there are many pitfalls hidden in this act, and it could turn out to be 'bad news after good news'. Today's article will clarify what this act is, how to avoid the pitfalls, and whether the market will rise because of it.
Let me explain briefly, the core of the (CLARITY Act) is two things: first, to clarify which cryptocurrencies are securities and which are commodities; second, to delineate the regulatory responsibilities of the SEC (Securities and Exchange Commission) and the CFTC (Commodity Futures Trading Commission). Previously, the U.S. cryptocurrency space was chaotic because the regulatory responsibilities were unclear, and the SEC and CFTC often passed the buck to each other, leaving project teams unsure of whose rules to follow. Now this matter needs to be clarified, theoretically allowing the market to have clear guidelines.
But don't celebrate too early; here's a guide to avoid pitfalls. You must avoid these four traps! The first pitfall: Don’t blindly chase after "beneficiary coins from the bill." Many people have already started to hype so-called "SEC-compliant coins," claiming these coins will skyrocket due to the bill passing. But you must know that the bill has not passed yet; it’s all speculation, and even if it does pass, it’s still uncertain which coins can be classified as "commodities." Many so-called "beneficiary coins" are just air coins, taking advantage of good news to make a quick profit and then running away. My advice is: don’t follow the trend to buy; wait until the details of the bill are released before taking action.
The second pitfall: Beware of the "cross-border regulatory arbitrage" scam. Some project teams will say, "U.S. regulations are strict, so we will move overseas," and then ask you to transfer your assets to their so-called "overseas compliant platform." Remember, global regulations are tightening now; there is no place that is "outside the law." Such platforms are likely built by scammers whose goal is to steal your money. The third pitfall: Don't believe the nonsense that "once the bill passes, a bull market is certain." Influencers calling for a bull market are either trying to get you to buy in or simply do not understand the bill. The core of the bill is regulation, not encouragement. In the short term, clear regulations may deter some funds from entering the market and could even suppress it. The fourth pitfall: If you hold securities-type cryptocurrencies, hurry to assess the risks. If your coins are classified as securities, you must comply with securities regulations. Many project teams may not meet the requirements and will be forced to delist, which could turn your coins into worthless paper.
Let's talk about market trends. My personal view is clear: short-term fluctuations, long-term benefits, but don't expect an immediate rise. In the short term, during next month's bill debate, the market will be very sensitive; even minor news can trigger volatility. Bitcoin may fluctuate between $80,000 and $100,000, while Ethereum will range between $3,000 and $3,500. After all, everyone is waiting for the details, and no one dares to enter rashly. But in the long term, once the regulations are clear, institutional funds will feel safe to enter. Many institutions have been hesitant to engage with cryptocurrencies due to regulatory risks. After the bill passes, this part of the funds may gradually flow in, driving the market up.
My operational advice is: mainly observe in the short term, avoid frequent trading to prevent being shaken out by fluctuations; if you hold quality mainstream coins, continue to hold them and don't be scared by short-term volatility; if you have small-cap coins, especially those that may be classified as securities, quickly liquidate. Remember, what the crypto world lacks is not good news, but a calm mind.
Finally, a reminder for everyone: During the bill debate, there will definitely be a lot of false information, such as "certain coins have been classified as commodities" or "the bill has passed early." Always verify the source of the information and don’t be fooled by fake news. Follow me @链上标哥 so you don't get lost! Tomorrow I will compile a list of "cryptocurrencies that may be classified as securities" to help you avoid pitfalls. If you find this useful, please follow me; otherwise, you might not find it tomorrow!
