Bernstein says CLARITY Act progress may exceed expectations, policy expectation rebounds

Bernstein stated that the progress of negotiations in the US Senate regarding the CLARITY Act may be stronger than market expectations. The bill released by Senate Republicans incorporates 126 amendments proposed by Democrats, covering conflicts of interest in cryptocurrency assets, law enforcement roles, stablecoin reward mechanisms, and community bank protection. The Treasury Secretary will be granted up to 18 months of stablecoin reward circuit breaker power. The White House has made concessions on ethical terms, and some Democratic lawmakers are concerned about anti encryption labels before the midterm elections. The probability of the market pushing forward the bill within the year is predicted to rise to over 30%. The procedural vote on Tuesday requires 60 votes in support, and there will still be amendments, final voting, and coordination in the House of Representatives to follow.