Bitwise: Crypto Bull Run Needs No Washington Approval, Clarity Setback Is Just a Minor Detour

The impact of the Clarity Act's setback is far less severe than current news headlines suggest.

Author:Matt HouganTranslated by Shaw, Golden Finance

The crypto bull run does not require Washington’s approval. The following data confirms it.

The Clarity Act failed to pass yesterday. It needed 60 votes in the Senate to advance but ultimately received only 49. All Democratic senators voted against it, along with some Republican members.

This is regrettable. The Clarity Act was a high-quality proposal. It would have strengthened investor protection and established a regulatory framework for the crypto industry that could remain in effect beyond the current administration's term.

The most direct question right now is: Will the setback to the Clarity Act disrupt the crypto bull run that started in early July?

Back in January, I referred to the Clarity Act as the “Ponksooni Phil” of the crypto world (a Groundhog Day reference), predicting that if the bill failed, the market would endure another six weeks of winter. This meant that the market would remain highly volatile until the midterm elections.

But I now believe this is no longer the most likely scenario. Instead, I suspect the impact of the Clarity Act’s failure is far less severe than what today’s headlines suggest.