US Digital Asset Market Sees Record Outflows Amid CLARITY Act Uncertainty

The US digital asset market is experiencing significant outflows due to uncertainty surrounding the CLARITY Act, which aims to regulate digital assets. Spot Bitcoin ETFs saw net outflows of $450.33 million on Tuesday, while spot Ethereum ETFs recorded net outflows of $141.47 million.

These outflows come after the Senate failed to advance the CLARITY Act through a cloture vote, which fell short of the 60 votes needed for passage. Lee Jun-ho, a researcher at Hana Securities, believes that this outcome should be viewed as a delay rather than an outright collapse.

Lee noted that the legislative calendar is tighter for the CLARITY Act than it was for last year's GENIUS Act, which also failed its first procedural vote before passing on a second attempt. The Senate will enter recess ahead of the midterm elections starting October 5, potentially pushing the timeline for renegotiation to next year.

The delay in US market structure legislation could have indirect implications for South Korea's regulatory timeline as well. Lee suggested that the uncertainty surrounding the CLARITY Act may lead to a further delay in South Korean policymakers' deliberations on second-phase digital asset legislation.