Bernstein analysts say the market is overlooking real momentum behind the CLARITY Act. According to them, recent Republican concessions have actually improved the bill’s odds of moving forward, but traders haven’t priced in this scenario yet.

Bernstein’s Take

“Looks like the CLARITY Act made more headway than the market expected last week. Any upside surprise here is definitely not priced in,” the analysts wrote. They point out that most investors are still positioned for a negative outcome. If the bill gains traction, it could trigger sharp moves in both crypto prices and crypto-related stocks.

Why This Matters for the Market

If traders really are bracing for bad news, any positive development around the CLARITY Act could force a rethink on risk and spark a rush into crypto assets. That makes news around the bill a potential catalyst for volatility and fresh market trends.