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Published 18 days ago • loading... • Updated 14 days ago
CLARITY Act Failure May Send Crypto Valuations Lower: Bernstein
Analysts say a 30% chance of passage this year leaves Ethereum, XRP and Solana without the legal clarity that could draw institutional capital.
With Congress departing for its August recess, the CLARITY Act faces significant delays, forcing crypto majors to grind sideways until legislative debate resumes in the fall.
The primary roadblock involves a package of ethics rules targeting government officials, while the bill's market structure and asset classification provisions remain far less contentious.
Bernstein analysts report that prospects for the legislation have deteriorated, and Polymarket traders have wagered about $3.7 million betting against passage before 2026 ends.
Failure to pass the bill would likely trigger an immediate negative market reaction, though analysts expect the SEC and CFTC to accelerate rulemaking under Project Crypto.
White House officials are weighing a bipartisan ethics counterproposal received on Thursday from Republican Senator Thom Tillis and Arizona Democrat Ruben Gallego to break the deadlock.