Bitcoin (CRYPTO: $BTC) has been struggling to regain momentum this year, and investors are in search of a catalyst. One development that could change that is progress on the Clarity Act. The crypto bill is moving toward a possible Senate floor vote in July.
If lawmakers advance the bill, it could give Bitcoin and the broader crypto market something they have lacked for years: a clearer set of rules.
David Nage, managing director and portfolio manager at Arca, said that the industry and policymakers are largely aligned on the bill. In a recent report, he estimated that crypto market structure legislation is about 80% to 85% complete.
• Ripple, The Company Behind XRP, Is Valued At $50 Billion
He also said the bill could reach the Senate floor after Congress returns from recess on July 13, provided lawmakers can resolve the remaining issues.
Those issues appear to center less on the core structure of crypto regulation and more on ethics language, especially rules that would bar government officials from profiting from crypto-related business activity while in office. Nage has said stablecoin yield provisions, once viewed as a major obstacle, are no longer the main sticking point.
Instead, the debate now appears focused on how conflict-of-interest restrictions should be written and enforced.
For Bitcoin, passage of the Clarity Act could be a major catalyst. Regulatory uncertainty has been one of the main reasons institutional investors, exchanges, and corporate treasury managers have remained cautious. A bill that more clearly divides oversight between agencies could lower perceived risk, strengthen investor confidence, and make it easier for large pools of capital to enter the market.
After a difficult stretch for Bitcoin, that kind of legal clarity could provide the spark the cryptocurrency has been missing.