Asset management firm Bitwise identified the CLARITY Act as one of the key catalysts for the cryptocurrency market, predicting that if the bill passes, the current bear market is likely to form a bottom. Bitwise stated in its 3Q outlook report, “This third quarter is a critical period that will determine the direction of the CLARITY Act, which will define the structure of the cryptocurrency market. Prediction markets estimate the probability of the CLARITY Act passing within this year at approximately 40%. This is a significant drop from 75% in mid-May. If the CLARITY Act passes, it is highly likely to be the catalyst for confirming the bottom of this bear market. Conversely, if the bill is rejected, short-term volatility may increase, but uncertainties will gradually dissipate as the industry continues to develop under a pro-crypto U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC),” it explained.
