Warsh Takes Power, Clarity Act Approved: Who Is the Next Tipping Point for Crypto?

TradingKey - Warsh elected Fed Chair, CLARITY Act passed, cryptocurrencies rally broadly; H2 market outlook will depend on the U.S. Bitcoin Strategic Reserve and mid-term election events.

On May 15, buoyed by the passage of the CLARITY Act, the crypto market rose nearly 2%, with the total market capitalization returning above $2.7 trillion as major coins rallied collectively. Among them, Bitcoin ( BTC) rose over 2%, breaking $81,000 once again; Ethereum ( ETH) and BNB ( BNB) both rose over 1%, Ripple ( XRP) surged more than 4%, while Hyperliquid ( HYPE) skyrocketed nearly 17%.

Price changes of the top 10 cryptocurrencies by market cap, Source: CoinMarketCap

According to reports, the U.S. Senate Banking Committee passed the CLARITY Act with a 15-9 vote. Procedurally, the bill will next be submitted to the full Senate for a vote. After passage, it will be merged with the Senate Agriculture Committee's version before finally being sent to President Trump for signature, with completion expected by July 4.

On May 13 local time, Kevin Warsh was approved to serve as the Chair of the Federal Reserve, succeeding outgoing Chair Jerome Powell this Friday (May 15). Following this news, Bitcoin prices rebounded, reclaiming the $80,000 mark. Now, with more positive news regarding the CLARITY Act, Bitcoin's price has extended its rally, gradually approaching the $83,000 level. However, can Bitcoin's price break further above this resistance?

Bitcoin price chart, Source: TradingView

In the second half of 2026, two major events are closely tied to Bitcoin: the U.S. Bitcoin Strategic Reserve and the mid-term elections. In late April, Patrick Witt, Executive Director of the White House Presidential Advisory Council on Digital Assets, stated at the Bitcoin 2026 conference that "a major announcement regarding Trump's strategic Bitcoin reserve will be released in the coming weeks." To date, this announcement has not yet been made, though the market predicts it may be related to the American Reserve Modernization Act.

The American Reserve Modernization Act (ARMA), proposed by Senator Cynthia Lummis and Representative Nick Begich, aims to shift the U.S. government's stance on Bitcoin from "passive holding of seized assets" to "active strategic allocation." It proposes purchasing 1 million Bitcoins over five years using a "budget-neutral strategy" and positioning Bitcoin as a national strategic asset on par with gold.

2026 is a mid-term election year in the United States. This election will determine control of the U.S. Congress, which in turn will directly impact policy advancement during the final two years of Trump's second term. This also means the potential continuation or better execution of crypto-friendly regulations or reserve policies. If developments trend favorably, it will support upward momentum for Bitcoin prices; otherwise, the market could enter a prolonged bear phase.