CLARITY Act Delay Leaves Crypto Valuations Unfazed

The CLARITY Act's delay has been deemed 'pretty much dead' by Charles Schwab equity research director Adam Lynch, who expects no significant progress on the legislation for now.

This assessment suggests that passage of the bill was not heavily factored into cryptocurrency valuations. Despite this, Bitcoin has managed to hold above $65,000, only briefly dipping below that threshold in early August.

Ethereum, however, has performed even better with an approximate gain of 18% since June 1, compared to around 7% for Bitcoin. Meanwhile, XRP has fallen approximately 5% over the past month.

Lynch believes inflation and monetary policy may become more significant factors in determining crypto prices, as investors increasingly look towards assets that are less susceptible to government control. The Federal Reserve's September meeting could potentially pose a downside risk, with rising interest rates likely leading to decreased demand for cryptocurrencies and other assets.