The CLARITY Act, approved by the House in July 2025, has remained stalled in the Senate since September due to a sticking point on stablecoin yield provisions. The ongoing uncertainty is influencing market behavior, with investors increasingly moving capital to jurisdictions with clearer regulatory frameworks.
Traditional safe-haven assets are experiencing a rapid decline in liquidity, with gold's liquidity falling below that of bitcoin and silver's market depth weakening further. This trend is closely linked to significant outflows, with gold ETFs losing nearly $11 billion in the first three weeks of March. In contrast, bitcoin has remained stable, attracting net inflows and maintaining positive momentum.
The shift signals confidence in bitcoin's resilience and suggests that institutional investors are favoring crypto assets with established ETF structures and clearer adoption pathways. The Securities and Exchange Commission's (SEC) recent guidance on the 'Howey test' for crypto assets will be crucial in determining the broader regulatory direction and may overshadow the legislative stalemate.