CLARITY Act Rewrite Fails to Boost Bitcoin's Price Potential
The U.S. CLARITY Act, aimed at regulating cryptocurrencies, has undergone significant changes in the Senate. According to an analysis by Isaiah Austin, contributor to Bitcoin Magazine, the bill's impact on bitcoin is limited.
Austin reviewed the latest version of the bill clause by clause and found it hard to view as a bitcoin-only bill. The original 256-page text was deleted and replaced with new provisions, which include legal protection for self-custody rights, immunity for developers, and benefits for banks.
The revised bill allows banks and credit unions to custody digital assets, extend collateralized loans, operate nodes, and act as intermediaries without additional approval. Austin pointed out that this provision is the 'only bullish factor in terms of price', citing U.S. commercial banks' $25.7 trillion in total assets, about 20 times bitcoin's total market capitalisation of $1.3 trillion.
Austin concluded that even if the law passes, regulators do not start working immediately and that most of the bill aims to rescue altcoins facing uncertainty under securities law. He stated, 'Bitcoin will not boom or bust in Congress.' The CLARITY Act passed the House in July last year during 'Crypto Week' and has been sitting in the Senate Banking Committee for nearly a year.