2026-01-09 04:31:05

The U.S. Senate Banking Committee recently held a private meeting with industry leaders in the crypto space to discuss the upcoming CLARITY Act. This legislation is viewed by insiders as a heavyweight regulatory framework that must be implemented before 2026, targeting long-standing issues such as cryptocurrency identity verification, anti-money laundering compliance, and stablecoin regulation.

In simple terms, this meeting revealed several key signals:

**Regulatory Framework Coming Together**. The bill may require exchanges to enhance KYC(Know Your Customer) standards and include stablecoins within a regulatory system similar to bank deposits. This means the crypto ecosystem will face higher compliance costs but will gain clearer legal status.

**Long-term Benefits vs. Short-term Pain**. While increased regulation might trigger market adjustments and investor sentiment fluctuations in the short term, in the medium to long term, a clear regulatory framework is beneficial for attracting more traditional financial institutions into the market. Major blockchain projects like Solana(SOL), Polkadot(DOT), and Avalanche(AVAX) participated in the meeting, indicating that these ecosystems are already preparing technical compliance solutions.

**Uncertainties Remain**. There are still disagreements within the Senate regarding the details of the bill, especially whether to leave room for adjustments in DeFi. Additionally, political factors during the election cycle could influence the final implementation timeline and specific provisions. Investors should be cautious of the risks associated with overinterpreting 'consensus' signals and potential adjustments after policy benefits are realized.

Current performance of ecosystem tokens like ATOM, AVAX, and others warrants attention, as the market's digestion of regulatory expectations may create volatility opportunities.

SOL-2.84%

DOT-0.37%

AVAX-1%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

12 Likes

Reward
12
6
Repost
Share

Comment

0/400

DefiPlaybook

· 2h ago

According to on-chain data, these types of regulatory expectations are often priced into the market within 15-30 days. A risk warning — the probability of the DeFi ecosystem being fragmented is actually quite high, so keep a close eye on the progress of internal disagreements within the Senate.

View OriginalReply0

ProofOfNothing

· 12h ago

Hey guys, the KYC upgrade wave is really coming. Can DeFi still survive? It's the same old line about "regulatory framework clarity," which has worn out my ears, and inside the Senate, they're still tearing each other apart. Landing in 2026? I bet five bucks it will be delayed. Political cycle players all understand. The big brothers like SOL and DOT have already participated in meetings, which shows that compliance is unavoidable. Wallets, get ready to open your wallets. Short-term pain for long-term benefits? This kind of statement always lures some people into taking the risk. I'll just watch. But speaking of AVAX, its current price is quite interesting. Let's wait until the volatility settles. Will DeFi really be incorporated into the regulatory framework? If that really happens, I’ll just laugh to death.

View OriginalReply0

PretendingSerious

· 01-09 04:46

Here comes another set of regulatory chess moves. Every time, they say it's long-term good but short-term pain. I don't buy your nonsense. --- The DeFi space isn't even settled yet, how can they say the framework is taking shape? Feels like just another show. --- Are SOL, DOT, and the others involved? Then there must be insiders. The compliance plan must have been discussed long ago. --- Wait, how did so much information leak from a private meeting? Who was the source? --- Short-term pain, long-term benefits... I'm tired of hearing that. Better to just see if AVAX can break through the resistance level. --- Once political factors come into play, anything can happen. The next election is over a year away. Will the CLARITY bill pass smoothly? I remain skeptical. --- Upgrading KYC is just a disguised way to cut retail investors' gains. The higher threshold keeps small players out. Who benefits from this? --- If stablecoins are regulated like bank deposits, isn't that just a form of strict control disguised as blockchain? --- Will this wave of positive news be another "sell the hype" tactic? After the surge, they might be waiting to dump. --- With so much uncertainty, investors are still watching ATOM and AVAX. I really don't know whether to be nervous or excited.

View OriginalReply0

HorizonHunter

· 01-09 04:41

It's another private meeting releasing news; we've seen this routine too many times. Can DeFi really survive? It feels like they just want to incorporate everything into the traditional financial system. Short-term pain, long-term benefits—I've heard this so many times it’s almost calloused... Let's wait and see the election results first. Both SOL and AVAX are preparing plans; who will bear the compliance costs? Whenever policies are introduced or adjusted, retail investors are the ones being harvested. It's safer to go all-in on old coins. Just from the name, the CLARITY Act, you know it will ultimately be vague. If stablecoins are treated like bank deposits... then the status of USDT becomes awkward. What does Tether think? Anyway, if they want to regulate, let them. Should we buy or trade, we do what we should.

View OriginalReply0

ChainSauceMaster

· 01-09 04:35

Another private meeting, another "signal being leaked." I just want to know where this news is coming from haha --- I'm not afraid of KYC upgrades; I'm worried that stablecoins will be regulated as deposits. Will USDT still be so wild then? --- SOL, DOT, AVAX all attended the conference? Do my favorite small coins still have a chance, or have they already been marginalized? --- Short-term pain for long-term benefits. I've heard this phrase too many times. Last time, the good news led to a six-month decline. --- The space for adjusting DeFi is still undecided, which means there's still hope. That's the real uncertainty. --- Looking at the policy trend, is SOL and AVAX the right focus? Feels like more people are chasing the opposite. --- "Beware of over-interpretation." Once this phrase comes out, it actually makes over-interpretation more likely haha --- It must be implemented before 2026. Now it's the end of 2024, so the timing is actually quite tight. --- What does it mean that ATOM's performance is worth paying attention to? Does it imply it can rise or that it's the most resistant to decline? --- I only know that once regulation comes out, the initial good news will be a trap. Our group might be cut again.

View OriginalReply0

liquidation_watcher

· 01-09 04:31

It's the same old "clear regulation is a positive" rhetoric. What about DeFi, everyone? Upgrading KYC isn't just about pushing out retail investors, let's be clear. Short-term pain, long-term benefit... sounds nice, but the real pain is when the coins I hold start to drop. SOL and DOT are both attending the conference? Then we need to be even more cautious. Mainstream public chains are ready, do smaller coins still have a chance? Wait, the DeFi situation isn't settled yet, this pace feels off... Once political factors are involved, anything can happen. Don't be fooled by the "landing in 2026" hype. Should I buy AVAX now or wait for a correction? Seems like there will be some volatility. Why is this conference still private? Relying on "signal leaks" is really uncertain.

View OriginalReply0