Bitcoin Rally to $98K Fuels Crypto Rebound: Wall Street-Crypto Clash Threatens Key US Regulatory Bill

The crypto market is buzzing with excitement. as prices rebound sharply. But drama unfolds in Washington. A has sparked an intense standoff between Wall Street and the crypto industry. This could shape the future of digital assets.

Market Snapshot: Bitcoin and Ethereum Lead the Charge

The cryptocurrency market has staged a strong comeback. Bitcoin hit a two-month high near $97,500 before pulling back slightly. As of now, BTC trades at around $96,438, down 0.34%. Ethereum follows suit at $3,313, down 0.97%.

This rebound comes amid high hopes for clearer rules. Investors eye regulatory progress as a big driver for more gains. Bitcoin’s push toward $98K signals strong bullish momentum.

Bitcoin (BTC): $96,438 (-0.34%)
Ethereum (ETH): $3,313 (-0.97%)

US Crypto Bill in Limbo: Wall Street vs. Crypto Industry

The spotlight is on the U.S. Senate Banking Committee’s Cryptocurrency Market Structure Act. This bill aims to divide oversight between the SEC and CFTC. It could legitimize crypto trading and boost adoption.

But talks have hit a wall. Wall Street banks and crypto firms clash over stablecoin revenue rights. Banks want a bigger cut from stablecoin fees. Crypto players push back hard.

Coinbase CEO Brian Armstrong dropped a bombshell. He announced on social media that Coinbase pulls support. “We would rather have no bill than a bad one,” he said. Key gripes include limits on stablecoin rewards, tokenized stocks, and DeFi tools.

This shook the industry. The Senate canceled Thursday’s markup session. No new date yet. A crypto lobbyist warned: “This bill could collapse at the committee stage.”

Not everyone agrees with Coinbase. Supporters include a16z, Circle, Kraken, Digital Chamber, Ripple, and CoinCenter. They urge passage despite flaws.

Robinhood CEO Pushes for US Leadership in Crypto

Robinhood CEO Vlad Tenev voiced strong support. Staking is a top user request on the app. But rules block it in four U.S. states. Stock tokens launched in the EU but not here.

“The U.S. should lead in crypto policy,” Tenev said. He backs the bill for consumer protection and innovation. Robinhood offers help to Banking Committees.

Ethereum Staking Hits Record Highs

Good news for ETH holders. Staking reached 35.9 million ETH – nearly 30% of total supply. That’s a new peak. Exit queue is tiny at 160 ETH. Activation queue: 2.48 million ETH, about 43 days wait.

This shows growing faith in Ethereum’s Proof-of-Stake network. More locked ETH means stronger security and less selling pressure.

Regulatory Heat: Manhattan DA Targets Unlicensed Crypto Ops

In New York, DA Alvin Bragg wants tough rules. He calls to criminalize unlicensed crypto businesses. Goal: Stop money laundering and crime.

Key demands:

Mandatory licenses for crypto firms.
KYC for all users.
Crackdown on unlicensed crypto ATMs.
Better tools to recover stolen crypto.

This push highlights risks in unregulated spaces.

Stablecoins Gain Traction: Visa and JPMorgan Insights

Visa reports stablecoin settlements at $4.5 billion annualized run rate. Mostly from linked payment cards. But merchant acceptance lags. Visa pilots USDC settlements with banks.

JPMorgan forecasts big inflows. After $130 billion in 2025, crypto sees more in 2026. Institutions will drive it via ETFs, treasuries, and futures.

Global Crypto Highlights

Brazil Resumes Crypto Data Reporting

Brazil’s tax authority back online after three months. September data: 4.58 million people, 92K businesses reported trades. Stablecoins rule – USDT at 15.7 billion BRL. BTC at 2.46 billion BRL.

Argentina Launches Bitcoin-Backed Visa Card

Lemon exchange debuts first BTC Visa card. Pledge 0.01 BTC for 1 million pesos credit. No bank needed. Future: Stablecoin repayments. Turns BTC savings into daily spending power.

Arthur Hayes Predicts Bitcoin Boom

BitMEX co-founder sees dollar liquidity surge in 2026. Fed balance sheet grows, rates drop. This fuels Bitcoin rise.

Funding and Innovations Heat Up

Meld: $7M raise, total $15M. Aims for ‘Visa of crypto’ for global stablecoin access.
Oobit + Phantom: Tether wallet integrates Solana wallet for Visa payments. One-click stablecoin buys.
Project Eleven: $20M at $120M valuation. Quantum-proof crypto tech.
Strategy Counterparty: Boosts BTC, ETH, SOL longs to $471M.

What’s Next for Crypto?

The market rebound shows resilience. amid regulatory uncertainty. The Wall Street-crypto standoff tests industry unity. A good bill could unlock trillions. A flop delays progress.

Watch the Senate for updates. ETH staking and stablecoin growth signal maturity. Global moves like Argentina’s card show real-world use.

Stay tuned. Crypto’s future hangs in the balance.

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Filed under: Altcoins - @ January 15, 2026 1:31 pm