CLARITY Act failure could send crypto valuations lower: Bernstein
Bernstein says the chances of the CLARITY Act passing are fading as the Senate heads into recess, which could spark an immediate negative reaction in crypto markets and push Bitcoin and other tokens lower. The firm expects any market bottom to form later in Q3 or early Q4, before the US midterms. Even if Congress stalls, Bernstein thinks regulators may step in more actively through Project Crypto, with the SEC and CFTC ускорating guidance on token classification, DeFi, and a temporary innovation exemption for token issuance. Prediction markets also show weakening confidence: Polymarket now prices the bill’s passage by end-2026 at 31%, down sharply over the past month. Other market participants have likewise lowered their odds as the Senate runs short on time.
