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Question #572

Why is the Senate Banking Committee’s markup of the CLARITY Act considered a key event for Bitcoin’s regulatory outlook?

Category: General
It directly lowers Bitcoin mining costs by subsidizing renewable energy projects in the act.
It could establish clear rules for digital assets, reducing legal uncertainty and encouraging broader investment.
It mandates that all Bitcoin transactions must be settled through traditional banking channels only.

Why is this the correct answer?

This answer is correct because the CLARITY Act aims to define legal frameworks and responsibilities for digital asset issuers, exchanges, and service providers. Beginners should know that unclear or changing regulations can scare away investors, creating volatility. By setting clear rules, it encourages institutions and retail traders to participate with more confidence, which can lead to greater market stability and growth in the Bitcoin ecosystem.

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