The broader digital currency ecosystem is in celebratory mode as the United States Congress repealed a rule that is favorable to Bitcoin (BTC). Notably, the Bipartisan effort has a major implication that is also highly beneficial to altcoins.

The Law and Bitcoin, Altcoin Reaction

Dubbed SAB-121, the United States Securities and Exchange Commission (SEC) wants to prevent banks and financial institutions from gaining exposure to Bitcoin (BTC) and crypto. While this is an infringement on the freedom of American corporations, the regulator remained adamant to see it through.

The efforts of pro-crypto lawmakers like Sen Cynthia Lummis and Rep Tom Emmer helped change the narrative. The US Senate voted 60 to 38 to repeal the rule, making a major win for the crypto ecosystem.

Despite this win, Bitcoin has failed to move significantly. The price is down 0.71% in 24 hours to $65,277.86. There is an obvious volatility rocking Bitcoin as the digital currency has lost over $13.5 million in liquidated funds in just 4 hours. The same trigger rocked the altcoin world as Ethereum dropped 1.33% to $2953.14. Despite its best efforts, Ethereum is arguably losing the flipping game against Bitcoin per analysts’ recent projections.

Following the news, high-performance cryptocurrencies like Toncoin (TON), and Dogecoin (DOGE) also slumped 4.68% and 1.80% respectively. The market volatility, however, is favorable to some altcoins like Solana (SOL) and Shiba Inu (SHIB). While the firmer is up 4.22% to $160.12, the latter has maintained 2.21% to $0.0000245.

Crypto stocks also expressed a different stance in relation to the news. While Coinbase (COIN) has dropped 18.18% to $201.73 per share, Robinhood (HOOD) has slumped marginally by 0.32% to $18.20. Other crypto stocks including Hut 8 (HUT) and Marathon Digital (MARA) have also inked mild losses.

Why the Erratic Market Twist?

The first major fight for Bitcoin and the crypto ecosystem has been won. However, the major hurdle lies with President Joe Biden. For this victory from the Senate to stand, the President has to sign the Bill into law.

Meanwhile, President Biden had earlier hinted at plans to veto the Bill even if the Senate rejects it. The market understands that should this happen, it further complicates the efforts to get the assets right in front of corporations.

Already, these firms including Morgan Stanley, Wells Fargo and UBS amongst other have started gaining exposure to Spot Bitcoin ETF products already. An avenue to hold Bitcoin and altcoins directly will, however, serve the broader market well.

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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on Twitter, Linkedin

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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