CLARITY Act May Favor Altcoins Over Bitcoin

Zach Pandl, Head of Research at Grayscale Investments, believes that the CLARITY Act will be a positive catalyst for crypto if it passes a scheduled Senate vote on September 15.

The legislation aims to normalize how crypto is regulated relative to other established industries. According to Pandl, 'we want to see crypto just be treated as a normal industry.' He argues that treating crypto as a serious industry providing value should lead to bipartisan support for the bill.

Pandl's most interesting point centers on which assets stand to gain the most from the CLARITY Act. He suggests that Bitcoin may benefit less than other altcoins, such as Ethereum and Solana. This is because Bitcoin already has a clear regulatory status in the industry, limiting its potential upside.

Pandl points out that smart contract platforms and application-layer projects, like Chainlink and Uniswap, are better positioned to benefit from new regulatory clarity. He notes that these types of projects 'stand to benefit even more from Clarity passing.'