Clarity Act's Passage: What Happens If It Fails This Year
The Senate has scheduled a cloture vote for the Clarity Act on September 15. This vote will determine if the chamber will take up the bill for a final vote this year, and its outcome will likely cause an immediate reaction in the crypto market. If the bill is voted down or delayed, prices across the sector could drop, with some assets potentially plummeting by as much as 30%.
Despite being the leading asset of the crypto industry, Bitcoin doesn't really have a stake in the regulatory disputes that the Clarity Act aims to resolve. The legislation would settle which agency oversees various tokens, but no serious regulatory dispute considers Bitcoin a security. In fact, research group Bernstein estimates that if the bill fails to pass, Bitcoin could fall by 10% to 25%, and altcoins could drop by as much as 15% to 30%.
One way investors can protect their portfolios is to own Bitcoin now and be prepared to buy more during a potential dip. This approach would allow them to take advantage of lower prices if the bill doesn't pass. Additionally, having extra cash on hand could provide opportunities to purchase other major cryptocurrencies at discounted prices.