CLARITY Act Stalls in Senate, Bernstein Warns of Market Backlash
Bernstein is sounding an alarm about the potential impact of Congress failing to pass the Digital Asset Market Clarity Act. The bill, which aims to clarify who regulates digital assets, has seen its chances of passing dwindle as lawmakers head for recess on August 7, 2026.
The legislation would divide regulatory authority between the CFTC and SEC, with the former overseeing digital commodities linked to blockchain networks and the latter retaining control over securities with exemptions. The bill deliberately excludes stablecoins and derivatives from its core definition of digital commodities.
Bernstein warns that a failure to pass the bill could trigger a knee-jerk reaction among investors, potentially leading to lower valuations for cryptocurrencies.