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Story: Senate Delay on CLARITY Act Puts Crypto Valuations at Risk, Bernstein Warns

By Bruce Buterin

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CLARITY Act Odds Keep Falling. Prediction markets aren't optimistic. The probability of the CLARITY Act passing this year has…

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SEC and CFTC May Step In. So what happens if Congress punts? Bernstein thinks regulators won't just sit on their hands.

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Bipartisan Ethics Talks Complicate the Picture. There's another wrinkle. Separate bipartisan negotiations between Senator Thom Tillis and Democrat…

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The Senate's summer recess is closing in fast. And wealth management firm Bernstein is sounding the alarm — without the Digital Asset Market Clarity Act moving forward, the…

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Bernstein put it plainly: if the CLARITY Act doesn't advance before lawmakers leave town, Bitcoin and broader crypto valuations could slide.

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Prediction markets aren't optimistic. The probability of the CLARITY Act passing this year has dropped to 31%, down noticeably over recent weeks. Around $3.

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The bill was designed to build a full regulatory framework for digital assets in the U.S. — the kind of clarity the industry has wanted for years. But it's hit a wall.

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It's not just the banks. The Senate's calendar is brutal. The recess is imminent, and there's simply not much runway left to push a complex piece of legislation through.

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Project Crypto is aimed at building a workable regulatory framework for digital assets using existing agency authority, without waiting for Congress to act.

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Related: CLARITY Act Stall Puts Bitcoin at Risk Before Senates August 10 Recess

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That's not nothing. Clearer guidance from the SEC and CFTC could calm some of the market's nerves, even if it's not the sweeping legislative fix the industry wanted.

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So the industry is kind of stuck between two imperfect options: wait for legislation that seems less and less likely to arrive on time, or accept piecemeal regulatory moves that…

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There's another wrinkle. Separate bipartisan negotiations between Senator Thom Tillis and Democrat Ruben Gallego have produced an ethics proposal the White House is now reviewing.

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That's the frustrating part. Washington's attention isn't unlimited. Every hour spent on ethics enforcement fights is an hour not spent on digital asset legislation.

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More context: Senate CLARITY Act Stalls With 5 Days Left Before Recess and Galaxy Cuts Odds to 30%

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