CLARITY Act Seen as Turning Point for Crypto Market

Asset management company Bitwise has highlighted the CLARITY Act as a critical turning point for the cryptocurrency market in the US. According to their third-quarter outlook report, the passage of this law could be one of the most significant catalysts signaling the bottom of the current bear market.

The bill is currently in its third quarter and has the potential to clarify how and by which institution the cryptocurrency market will be regulated. The company notes that forecast markets are currently pricing in a 40% probability of the CLARITY Act becoming law this year, down from 75% seen in mid-May.

Bitwise argues that the passage of the CLARITY Act would significantly boost confidence in the crypto market and strengthen expectations of a medium-term market recovery. However, they also warn that volatility could increase in the short term if the bill is rejected or delayed.