The White House is pushing to pass the CLARITY Act by July 4, 2026 — the most comprehensive crypto regulatory framework in U.S. history — while banking lobby groups reportedly try to derail the bill. Failure could extend regulatory uncertainty until 2030 or beyond.
Institutional Investors Stay Committed
Bitwise CIO Matt Hougan believes institutional investors won't abandon crypto even if the CLARITY Act fails. He noted that during the 2018 and 2022 market crashes, Bitwise saw almost no major outflows despite Bitcoin dropping nearly 50%. Institutions are long-term holders who invest only when confident about Bitcoin's future.
Real-world data backs him up: BlackRock continues to lead Bitcoin ETF inflows, and corporate buyers like Strategy keep accumulating BTC. Institutional portfolios now view Bitcoin as a hedge against currency debasement. JPMorgan recently reported that Bitcoin is increasingly overtaking gold as investors' preferred "debasement trade."
Unlike retail investors, institutions understand crypto volatility and plan to increase exposure over time. Hougan asserts that even without the CLARITY Act, institutional demand is still coming.
Risk of U.S. Innovation Exodus
Industry policy discussions suggest that while Bitcoin may grow globally, regulatory uncertainty could slow broader U.S. crypto adoption. Banks remain cautious about offering crypto services; crypto companies may shift operations and development to friendly jurisdictions like Dubai, Singapore, and Hong Kong. The U.S. crypto ecosystem could lose valuable time and innovation momentum.
Final Push for Legislation
Senator Bernie Moreno said the Digital Asset Market Clarity Act is nearing its final stages, with lawmakers aiming to get the bill to the President's desk before end of June and signed into law before July 4. The markup schedule hasn't been announced yet. Senator Angela Alsobrooks confirmed that the stablecoin yield issue — one of the biggest obstacles — has been resolved, clearing the path for passage.
The bigger question is no longer whether Bitcoin survives, but whether the United States risks falling behind in the global crypto race.