If the Cryptocurrency Market Structure Bill is Blocked, It's Over...Expert: "A Shock 4 Times Greater Than FTX is Coming"

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Whether the U.S. Cryptocurrency Market Structure Bill (CLARITY) passes has emerged as a key variable that will determine the survival of the virtual asset market.

According to the cryptocurrency specialized media outlet Coingape on April 14 (local time), Paul Barron, host of the cryptocurrency specialized YouTube channel Paul Barron Network, diagnosed that the market stands at a critical juncture depending on whether the U.S. Cryptocurrency Market Structure Bill passes the Senate. Barron emphasized that for market stability to be maintained, the bill must pass the Senate by early May and complete the presidential signing process by July 4.

If the legislative schedule is delayed, market shock could expand. Barron stated, “If the bill fails, market confidence will collapse, and chain liquidations 3 to 4 times larger than the 2022 FTX incident could occur.” This is regarded as a major risk that shakes the market structure itself, not just a simple price drop.

The current market environment is also a burden. Major assets, including Bitcoin (BTC), are experiencing increased volatility amidst macroeconomic instability and geopolitical risks. The U.S. consumer sentiment index has recorded its lowest level since 1952, raising concerns about an economic slowdown. In such a situation, securing regulatory clarity acts as a key condition for market stability.

Establishing a legal framework is also essential to maintain institutional capital inflow. If the passage of the bill, which includes key issues such as stablecoin revenue structures, is delayed, a structure where investment sentiment shrinks and capital outflows occur simultaneously could arise. Barron identified this bill as a key variable determining the direction of the global virtual asset market.

*Disclaimer: This article is for investment reference only and does not take responsibility for investment losses based on it. The content should be interpreted for informational purposes only.*