CLARITY Act failure could send crypto valuations lower: Bernstein
Bernstein said Congress’s failure to pass the CLARITY Act’s could trigger another leg down for crypto valuations and accelerate policy support from US regulators.
Bernstein, a wealth management firm, has expressed concerns that the failure to pass the CLARITY Act in Congress could lead to a decline in cryptocurrency valuations and prompt more aggressive regulatory measures from US authorities. The firm's analysts predict that the Senate's summer recess may result in a "knee-jerk reaction" in the crypto market, potentially causing a dip in Bitcoin and the broader digital asset market.
While the absence of the CLARITY Act may encourage regulatory bodies such as the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) to expedite their rulemaking efforts under Project Crypto, Bernstein remains skeptical about the bill's prospects. Prediction market data indicates a decreasing likelihood of the CLARITY Act's passage, with the odds dropping to 31% by the end of 2026, from a previous 32%.
Written by urgent.news from Cointelegraph's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
