It finally happened. We were all staring at our screens this week, waiting for Washington to finally give us a straight answer, but instead, we got a cliffhanger. The Senate Banking Committee just hit the brakes on the Digital Asset Market Clarity Act, and the fallout is messy.
Honestly, if you've been tracking the latest news on crypto, you know that "The Clarity Act" was supposed to be the finish line. It was the bill that would finally draw a line in the sand between the SEC and the CFTC. But on Wednesday night, Coinbase CEO Brian Armstrong pulled his support, citing a "bad bill" over a "no bill" philosophy.
Basically, the industry is split down the middle.
The DC Drama: Why the Clarity Act Stalled
Washington was supposed to mark up the almost 300-page bill this week. Then, things got weird. Armstrong went to social media to vent about specific language that he claims would basically ban "tokenized equities." That’s a huge deal because companies like Coinbase are betting their entire future on bringing traditional stocks onto the blockchain.
When the biggest U.S. exchange walks away from the table, the market notices. Shares of Coinbase (COIN) and Circle (CRCL) took a hit almost immediately.
It’s not just about corporate profits, though. Lawmakers are currently arguing over ethics rules that would stop senior government officials—even those in the White House—from profiting from their personal crypto bags. It’s the kind of political gridlock that makes you want to close your laptop and go for a walk.
But you can't really ignore it.
The delay has blunted what was looking like a massive "we are so back" rally for January 2026. Bitcoin was knocking on the door of $100,000, hitting a high of $98,800 before the news broke. Now? We're seeing a bit of a retreat.
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Institutional Money vs. The "Clarity" Void
While the politicians are bickering, the "suits" are still buying. It's a weird dichotomy. According to the latest news on crypto markets, U.S. Bitcoin ETFs just saw $1.8 billion in weekly net inflows. That is the strongest showing we’ve seen since October 2025.
BlackRock and Fidelity aren't waiting for the Senate to finish their coffee.
- BlackRock's IBIT led the charge with over $648 million in a single day.
- Strategy (formerly MicroStrategy) just scooped up another 13,600 BTC.
- Ethereum ETFs are finally finding their footing, pulling in $175 million this week.
It feels like two different worlds. In one world, the legal framework is falling apart. In the other, the world’s largest asset managers are treating Bitcoin like it's just another version of gold.
Standard Chartered’s Geoffrey Kendrick is still calling 2026 "the year of Ethereum," much like 2021 was. He’s looking at a $40,000 price target for ETH by 2030, driven by this slow-motion institutional absorption. But that depends on the plumbing working. If we don't get the Clarity Act passed by the end of Q1, that $250,000 "Tom Lee" moonshot for Ethereum starts to look more like a dream than a forecast.
The Rise of the "Bank-Grade" Stablecoin
If you're looking for where the actual innovation is happening while DC stalls, look at the banks.
SoFi Technologies just launched SoFiUSD. It's a fully reserved U.S. dollar stablecoin issued directly by SoFi Bank. This isn't some offshore algorithmic experiment. It’s bank-grade oversight.
Then you have Wyoming. They just launched the "Frontier Stable Token" (FRNT), which is the first fiat-backed stablecoin issued by a public entity in the U.S. It’s already live on Kraken and running across Arbitrum, Base, and Solana.
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This is the real latest news on crypto that people are missing: the "Wild West" era of stablecoins is dying. It’s being replaced by something much more boring, but much more powerful.
J.P. Morgan is even getting in on the action, pushing their JPM Coin onto the Canton Network to allow instant settlements for institutional clients. When the biggest bank in the world starts using a digital ledger for their daily plumbing, the "crypto is a scam" argument starts to feel pretty dated.
AI and Scams: The Dark Side of 2026
We have to talk about the elephant in the room: AI-enabled fraud. Chainalysis just dropped a report that is honestly pretty terrifying.
Scams using AI tools are extracting 4.5 times more money than traditional "manual" scams. We’re talking about median daily revenues of nearly $5,000 per operation.
The scammers are buying AI models on-chain, which at least lets investigators track the money. But the efficiency is the problem. AI lets one scammer manage hundreds of victims simultaneously. It’s the industrialization of fraud.
If you're seeing a deepfake of a CEO promising a "double your money" giveaway on X or YouTube, it’s probably an AI agent. Stay sharp.
How the Market Looks Today (January 16, 2026)
| Asset | Price | Trend |
|---|---|---|
| Bitcoin (BTC) | $97,053 | Testing $98k resistance |
| Ethereum (ETH) | $3,367 | Consolidation mode |
| XRP | $2.06 | Anticipating IPO news |
| Solana (SOL) | $141.00 | Ecosystem growth vs. price lag |
What Most People Get Wrong About This Dip
Don't mistake the current price wobble for a crash. The total market cap is still sitting at a massive $3.37 trillion.
What we’re seeing is a "leverage reset."
Traders got too excited about the Clarity Act passing on the first try. They took out big loans (leverage) to bet on the price going up. When the vote got delayed, those bets got "liquidated," forcing the price down.
It’s actually healthy. It flushes out the "weak hands" and the gamblers, leaving more room for the institutional buyers to build a floor.
The real story isn't the $2,000 drop in Bitcoin; it’s the fact that 60 of the top 100 coins are still flashing green despite the political mess. Investors are starting to look at the tech—things like Provenance Blockchain (up 20%) and Internet Computer (up 11%)—rather than just following the Bitcoin ticker.
What You Should Actually Do Now
The latest news on crypto suggests we are in a holding pattern until the Senate Banking Committee reschedules that markup.
If you're an investor or just a casual observer, here is the reality:
First, watch the $98,800 level for Bitcoin. If it breaks that with high volume, $100,000 isn't just a meme; it’s inevitable. But if it keeps bouncing off that ceiling, expect more sideways chop.
Second, keep an eye on the "GENIUS Act" implementing rules. The Treasury has until July 2026 to finalize how stablecoins are actually going to be governed. This will dictate which coins you can actually use for payments and payroll in the future.
Third, audit your security. With AI scams on the rise, "two-factor authentication" (2FA) via SMS is no longer enough. Use a physical security key or an authenticator app.
The "Clarity" might be delayed, but the adoption isn't. The move from "experimental" to "infrastructure" is happening right under our noses, whether the Senate is ready or not.
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Your Next Steps:
- Verify if your exchange supports the new "bank-grade" stablecoins like SoFiUSD or FRNT for lower-risk holdings.
- Monitor the Senate Banking Committee’s calendar for the rescheduled Clarity Act markup; the news will likely trigger the next major volatility event.
- Move any significant assets off exchanges and into self-custody wallets, especially as regulatory uncertainty for U.S. exchanges fluctuates this quarter.