Bernstein Warns of Further Crypto Declines if Clarity Act Fails This Year
Wall Street investment bank Bernstein has warned that the crypto market could face further declines if the Clarity Act, a US crypto market-structure bill, fails to pass this year. The chances of the bill passing are diminishing as time runs short before the Senate recess, according to CoinDesk's report on August 3.
The bank's market research team led by Gautam Chhugani believes that the Clarity Act is the most important crypto market-structure bill in US history. However, they also expect the crypto market to react negatively immediately if the bill fails to pass, although this impact would likely be temporary.
Bernstein said that the current downturn in the digital-asset market could end in late third quarter or early fourth quarter, and additional policy support from the White House could help spark a rebound. The bank emphasized that the Clarity Act remains important over the long term as it would help define the boundary between securities and commodities oversight while encouraging blockchain investment by banks, asset managers, and exchanges.