Cryptocurrency markets staged a broad rally in the week following the Clarity Act’s failure to advance in the U.S. Senate.
Several major tokens and crypto-linked stocks posted double-digit gains as regulators moved ahead with industry rules despite the legislative setback.
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Bitwise Head of Research Ryan Rasmussen highlighted the highest gainer, NEAR Protocol (CRYPTO: NEAR), with an 88.9% jump between Sep. 15 and Sep. 22, while Uniswap (CRYPTO: UNI) spiked 60.5% and Avalanche (CRYPTO: AVAX) rallied 55.5%.
Zcash (CRYPTO: ZEC) gained 46.7%, while Hyperliquid (CRYPTO: HYPE) rose 26.4%. XRP (CRYPTO: XRP) and Solana (CRYPTO: SOL) advanced 22.4% and 22.3%, respectively.
Even the largest cryptocurrencies participated in the rally, with Ethereum (CRYPTO: ETH) climbing 14.8% and Bitcoin (CRYPTO: BTC) gaining 14% over the period.
Crypto Stocks Also Joined
The strength wasn’t limited to digital assets.
Securitize Corp. (NYSE:SECZ) surged 63.1%, while Galaxy Digital (NASDAQ:GLXY) gained 21.9% and Coinbase Global Inc. (NASDAQ:COIN) advanced 16.8%.
Robinhood Markets Inc. (NASDAQ:HOOD) rose 12.5%, followed by Figure at 11.5% and Circle Internet Group Inc. (NYSE:CRCL) at 9.6%, according to the Bitwise data.
“We’re one week out from the Clarity Act failing,” Rasmussen said in an X post on Sep.25, pointing to subsequent regulatory moves from the SEC and CFTC.
The gains are notable because the Senate’s failure to advance the Clarity Act had been viewed as a potential setback for an industry seeking a comprehensive U.S. market-structure framework.
Instead, markets largely looked through the setback as regulators moved forward under their existing authority.
SEC published its Innovation Exemption, the CFTC sent crypto-related rule proposals to the White House and subsequently updated its guidance on crypto activities.
‘Impressive’ Rally Despite Headwinds
Charles Schwab’s Adam Lynch highlighted the resilience of Bitcoin and Ethereum, which gained roughly 10% over five trading sessions even after the Clarity Act vote and the Fed’s interest-rate hike.
The significant rally lifted the cryptocurrency market valuation above $3 trillion, Lynch said in an interview on Sep.24.
He attributed the broader recovery partly to improving risk appetite following the Treasury’s Aug. 19 announcement of increased buybacks of longer-dated government bonds.
Institutional demand also strengthened. Lynch said roughly $4.6 billion had flowed into spot Bitcoin ETFs since Aug. 19, while year-to-date flows turned positive.
However, the rally has come with additional risk.
Lynch noted that BTC perps open interest has climbed back toward July levels, meaning increased leverage could amplify sharp moves in either direction.
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