According to White House crypto advisor Patrick Witt, the CLARITY Act could pass by July 4, 2026. Witt also stated that an announcement for the operational and legal framework of a US Bitcoin Strategic Reserve could happen within weeks. The announcement will likely expand upon the executive order President Trump signed in March 2025, just weeks after assuming office.
Will Bitcoin Rally If The CLARITY Act And US Strategic Reserve Is Created?
As the name suggests, the CLARITY Act aims to bring much-needed clarity to the budding industry. It aims to put in place a rulebook to not only govern the crypto landscape, but also designate which asset falls under which jurisdiction. It will clarify whether the SEC or the CFTC is in charge of a particular asset. Earlier this year, the SEC and CFTC put out a joint statement which classified Bitcoin (BTC) and some other cryptocurrencies as digital commodities. The CLARITY Act will likely further expand on the SEC and CFTC’s recommendations.
Also Read: Clarity Act Explained: Is It A Good Time To Invest In Crypto?
If the CLARITY Act is passed, it may create a safer environment for investors to interact with the crypto landscape. It may boost confidence, and may also lead to a surge in retail and institutional inflows. Such a move could lead to a big price rally Bitcoin (BTC) and the larger crypto market.
Furthermore, the setting up of a strategic Bitcoin reserve in the US may further drive adoption, as it may give additional confidence to investors. Moreover, it would mean that the US government would strategically purchase Bitcoin (BTC), which could further help the asset’s price. Additionally, it could lead to more legitimization for the asset class. Not only would retail players feel confident about investing in BTC, institutional money may also see an increase.