Kevin O'Leary Says Bitcoin May Not 'Automatically' Rally Even If CLARITY Act Passes, Warns Midterms Could Create Washington 'Gridlock' - Yahoo Finance
Kevin O'Leary warned that Bitcoin may not automatically rally even if the CLARITY Act passes, citing potential Washington gridlock after the midterm elections.
Kevin O'Leary said the midterm elections could influence the CLARITY Act's prospects and the direction of U.S. cryptocurrency policy. He took to X on Thursday and stated that a shift in House control could produce "gridlock" in Washington and make the CLARITY Act harder to pass.
The entrepreneur identified that while the bill had come close to advancing, lawmakers remained divided over whether USDC should be permitted to offer yield, which he called an unresolved issue.
Bitcoin Price Stuck
O'Leary noted that Bitcoin is struggling to break out of its $70,000–$80,000 range due to regulatory uncertainty surrounding the stalled CLARITY Act and quantum computing risks. He estimates quantum concerns now deter 15% of potential Bitcoin investors, up from 10% previously.
Even if the legislation passes, I'm not convinced it automatically sends Bitcoin higher.
Analyst Benjamin Cowen warns Bitcoin could face another Q4 sell-off ahead of next week's U.S. midterm elections, with potential support near $73,000 if Bitcoin falls below its 21-week EMA.
Regulatory Uncertainty
The legislative uncertainty follows the CLARITY Act's failure to advance in the Senate. Earlier this month, the Commodity Futures Trading Commission (CFTC) stated it is advancing its first set of crypto market-structure rules after Congress failed to move forward with the CLARITY Act.
Michael Selig, the agency's chairman, said the regulatory effort was "just the beginning," indicating that some oversight changes could proceed without new congressional legislation.
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