Bernstein Warns: CLARITY Act Failure Sparks Crypto Selloff Fears

The crypto market has been struggling since June 2026, and recent developments have intensified concerns. A vote on the CLARITY Act is pending in Washington, with significant consequences for the crypto industry.

Bernstein analysts warn that if the bill fails to pass, a selloff will likely occur, deepening the current downturn. The market has already suffered an extended period of decline and is expected to continue struggling until late Q3 or early Q4, according to Bernstein's projections.

The SEC and CFTC are poised to accelerate their rulemaking efforts in response to a legislative failure. This shift in approach could help contain the downturn, but Senator Cynthia Lummis warns that a delay in regulatory clarity may push back the timeline for crypto regulation until 2030.