The long-awaited CLARITY Act has been postponed again. Instead of 2025, the bill will not be discussed in the US Senate until January 2026. That news is causing great nervousness among investors. Last week, almost $1 billion flowed out of crypto funds.
Delay CLARITY Act puts pressure on crypto funds
The American CLARITY Act, which was originally scheduled to be discussed this year, has been postponed again. Instead of 2025, the bill will now only be discussed in the Senate in January 2026. That delay appears to have seriously undermined investor confidence.
According to new figures from asset manager CoinShares, $952 million flowed from crypto investment products last week. This brought an abrupt end to three weeks of net inflows. Ethereum (ETH) was hit the hardest, with an outflow of $555 million. Bitcoin (BTC) also saw $460 million flow out.
The losses mainly occurred in the United States, where almost 990 million dollars flowed from the market. A modest influx was observed in Canada and Germany.
What is the CLARITY Act?
The so-called Digital Asset Market Clarity Act, or CLARITY Act for short, should finally provide clarity about the legal status of crypto in the United States. An important part is the question of which regulator is responsible: the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC).
Institutional investors in particular have been waiting for that clarity for years. Ethereum is the most vulnerable, says James Butterfill of CoinShares. The law will determine whether ETH is seen as a security or a commodity, and that has major implications for regulation and trading.
Bitcoin already legally falls largely under the label ‘commodity’, which ensures less uncertainty surrounding BTC.
Raoul Pal: banks are ready to be built
Well-known macro investor Raoul Pal is extremely optimistic about the possible impact of the law. In a recent video, the CEO of Real Vision states that the CLARITY Act will kick off mass adoption of crypto in the financial sector:.
“Once the CLARITY Act is passed, all banks will start setting up their own infrastructure for all things crypto,” Pal said. He emphasizes that banks certainly want to, but will only really take action once there is legal clarity that serves as a “green light”.
Source: https://newsbit.nl/cryptofondsen-verloren-bijna-1-miljard-vorige-week-door-uitstel-cryptowet/
