Clarity Act Fails: What Happens Next?
The Clarity Act's chances of passing in 2026 are slim. As of September 4, prediction markets put the odds at just 16%.
A Senate cloture vote is scheduled for September 15, and a failure to pass would likely cause an immediate dip in crypto prices across the sector.
To protect their portfolios, investors can consider three strategies: owning Bitcoin now and being ready to buy the dip if it happens, keeping some extra cash at the ready to take advantage of any oversold conditions, and writing down a plan in advance for how to react to a strong and sudden decline in their portfolio.
The legislation would settle which agency oversees which tokens, but no serious regulatory dispute treats Bitcoin as a security. Research group Bernstein estimates that it would fall by somewhere between 10% to 25%, with altcoins potentially falling by as much as 15% to 30% if the Clarity Act doesn't pass.
Ethereum and Solana have catalysts and drivers of their growth that will keep operating whether or not the bill gets over the finish line in Congress. They have scheduled upgrades before the end of 2026, which will improve their capabilities, and they also have project ecosystems that will continue to generate value.