Kevin O'Leary expressed doubt that Bitcoin would automatically rise if lawmakers passed the CLARITY Act. O'Leary said the connection between legislation and Bitcoin's price was the question O'Leary was monitoring. O'Leary said the midterm elections could affect the bill's chances and the direction of U.S. cryptocurrency policy.
O'Leary wrote on X on Thursday that a change in House control could cause Washington gridlock and complicate passage of the CLARITY Act. O'Leary said the bill had nearly advanced. O'Leary identified an unresolved disagreement among lawmakers about whether USDC should be allowed to offer yield.
In a recent interview, O'Leary attributed Bitcoin's difficulty escaping the $70,000 to $80,000 range to institutional caution over regulatory uncertainty and quantum computing risks. O'Leary linked the regulatory uncertainty to the stalled CLARITY Act. O'Leary estimated that quantum concerns now discourage 15% of potential Bitcoin investors, compared with 10% previously. O'Leary continues to hold Bitcoin. O'Leary said addressing Bitcoin's quantum security concerns could eventually make a $1 million price possible.
Analyst Benjamin Cowen warned of another potential Bitcoin sell-off in Q4 before next week's U.S. midterm elections. Two successive weekly closes below Bitcoin's May high indicate a possible bull trap. The 200-day moving average, near $73,000, could provide support if Bitcoin drops below the 21-week EMA.
The CLARITY Act has failed to advance in the Senate. The proposed federal legislation seeks to establish a comprehensive market-structure framework covering digital assets, cryptocurrencies and blockchain infrastructure. Earlier this month, the Commodity Futures Trading Commission (CFTC) said the agency was developing initial cryptocurrency market-structure rules after Congress failed to advance the CLARITY Act. CFTC Chairman Michael Selig described the regulatory work as "just the beginning". Some changes to oversight could therefore proceed without Congress passing new legislation.
House Financial Services Committee Chairman Representative French Hill, a Republican from Arkansas, said regulators were progressing. However, Hill maintained that permanent legislation was still needed. Hill did not rule out the CLARITY Act returning before year-end.
Kevin O'Leary Doubts Bitcoin Rally Despite CLARITY Act, Warns of Midterm Impact
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Summary
Kevin O'Leary cast doubt on a Bitcoin rally even if the CLARITY Act passes, citing regulatory policy risks and quantum computing threats. He warned the U.S. midterms could delay the bill and shift crypto policy. The CLARITY Act remains stalled in the Senate, while the CFTC pushes ahead with market rules. CFT concerns also loom as part of broader regulatory policy debates.
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