Rates Matter More Than Regulation for Crypto Market Despite CLARITY Act Setback, Analysts Say

Forecast Trend Report by Period

The cryptocurrency market tumbled after the CLARITY Act failed to advance in the U.S. Senate, but analysts say the market’s medium- to long-term direction will be shaped more by interest rates than by regulation.

The Block reported on September 16 that Justin d’Anethan, head of research at Arktic Digital, said it was clearly disappointing that the CLARITY Act did not clear the Senate, but that the outcome was not a structural problem. He added that both current price levels and previous record highs were established before the CLARITY Act existed.

D’Anethan said interest rates and the monetary-policy backdrop matter more than regulatory clarity in determining the market’s direction. He also said institutional investors are treating the vote less as a fatal blow than as a delay in the regulatory timeline.