Bernstein warns CLARITY Act failure could lower crypto valuations

Bernstein is sounding the alarm on what happens when Congress can’t get its act together on crypto legislation. The wealth management firm warned that fading prospects for the Digital Asset Market Clarity Act in the Senate could trigger an immediate negative reaction across crypto markets. The timing makes this particularly spicy. Lawmakers are expected to head for recess around August 7, 2026, and the bill’s chances of securing a vote before then appear to be shrinking fast. What the CLARITY Act actually does The Digital Asset Market Clarity Act, formally known as H.R. 3633, was introduced on May 29, 2025. It attempts to answer the question that has haunted crypto for years: who exactly is in charge of regulating digital assets. Under the proposed legislation, the CFTC would oversee digital commodities linked to blockchain networks, while the SEC would retain authority over securities with certain exemptions. The bill deliberately excludes stablecoins and derivatives from its core digital commodity definition. House committees reported on the bill back on June 23, 2025, and the Senate Banking Committee advanced it through markup in May 2026. The market impact of legislative limbo ...