CLARITY Act Failure Could Spark Imminent Crypto Selloff

A Wall Street firm called Bernstein has issued a warning that the failure to pass the CLARITY Act could trigger an immediate negative reaction across Bitcoin and the broader crypto market.

The CLARITY Act, which is aimed at providing clarity on digital asset regulations in the US, is expected to be voted on before the Senate heads into August recess. If it fails to pass, Bernstein warns that investors may become increasingly risk-averse and dump their assets, leading to a fresh selloff.

The warning comes as Bitcoin prices have been showing signs of stabilization after a tumultuous few months. The cryptocurrency has struggled to regain its footing following the collapse of TerraUSD and other stablecoins in May.