The Senate CLARITY Act vote is coming on January 15th, and this time it's not just a routine regulatory move. The core target of the bill is the chaos in the crypto space: false transactions, liquidity wash trading, and fake reserves. Once implemented successfully, those small coins that rely on packaging concepts, have no real application, and are purely driven by hype will have little room to survive.

How harsh is this bill? It mandates that trading data must be transparent and verifiable, asset reserves must be verified 1:1, and the entire chain will be shut down to wash trading and fake reserve loopholes. In plain terms, it aims to clear bubbles and remove excess water, making purely speculative quick-in quick-out strategies completely unfeasible.

After the vote, three certain market changes will occur. First, the liquidity of air coins will become increasingly narrow, with price fluctuations entirely driven by market sentiment, and risks will be maximized. Second, those popular small coins will find it difficult to rely on hype to push prices higher—short-term traders chasing gains will mostly get trapped, and the old quick-in quick-out tactics will no longer work. Finally, market funds will concentrate on mainstream coins with real applications and verified compliance, leading to more pronounced segmentation.

For short-term traders, the current risk is indeed high. The hype around high-risk small coins has completely collapsed, and news before the Senate vote can easily ferment. Once negative news appears, sharp declines of over 30% in a single day are normal. If you’re tempted to try your luck, your position should be strictly limited to within 5% of your total funds, and quick entry and exit are essential. Take profits at 8%-10%, and set stop-losses at 3%-5%. When the time comes, you must exit decisively—greed for just one more minute can lead to deep losses.

But from a long-term perspective, stricter regulation is actually a positive. Removing those purely speculative trash projects allows truly technically-advanced and practically applicable projects to be recognized. There will be short-term pain, but the market ecosystem will become healthier, and long-term holders can be more at ease. Mainstream coins like BTC, BIFI, and FXS will be more competitive in this major reshuffle.