Veteran trader Peter Brandt has said that the potential passage of the US Clarity Act is unlikely to have a meaningful short-term impact on Bitcoin’s price, despite growing confidence that the legislation could clear Congress as early as January.
Brandt argued that while the bill represents an important regulatory milestone, it does not fundamentally change Bitcoin’s valuation or long-term market dynamics.
“Is it a world-shaking macro development? Nope. Needed for sure, but not something that should redefine value,” Brandt said on Friday.
“Having an asset regulated, particularly an asset for which die-hard investors never wanted to be regulated, is not an earth-shattering event,” he added.
His remarks come as political momentum behind crypto market structure legislation continues to build in Washington.
Political Momentum Builds Ahead of January Push
White House crypto and AI czar David Sacks said on Thursday that lawmakers are closer than ever to passing the long-awaited bill.
“We are closer than ever to passing the landmark crypto market structure legislation,” Sacks said.
“We look forward to finishing the job in January,” he added.
The Clarity Act is designed to establish clearer rules around digital asset classification, oversight, and compliance in the US.
Industry participants have long argued that regulatory ambiguity has held back institutional adoption and innovation.
Despite that, Brandt does not believe clarity alone will spark a renewed surge in Bitcoin’s price.
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Market Has Already Priced In Regulatory Progress
Brandt stressed that the legislation should be viewed as a structural improvement rather than a price catalyst.
“The Clarity Act would be positive because it would greatly clarify the regulatory structure for crypto assets,” he said.
However, he maintained that expectations around the bill are already reflected in current market pricing.
That view was echoed by Ledn chief investment officer John Glover, who said the market is unlikely to react sharply if the bill passes.
“I don’t expect this event to have a significant impact on the markets on day 1,” Glover said.
He added that any positive influence on prices would likely emerge gradually rather than immediately.
“It is another step toward broad-based acceptance of Bitcoin and ETH as investable assets, so over time I still expect the price trajectory to be up and to the right over time,” Glover said.
Bear Market Outlook Still Intact
While acknowledging the broader benefits of regulatory clarity, Brandt said his technical outlook for Bitcoin remains cautious.
He described Bitcoin as being in a bear market, though he noted that the Clarity Act slightly tempers his downside expectations.
Brandt said the legislation could mean his “downside bias is moderate,” rather than severe.
Even so, his longer-term chart-based projections point to the possibility of further declines.
“I believe the charts suggest that Bitcoin could trade down to the $60k level, likely in Q3 of 2026,” Brandt said.
Such a move would represent a substantial pullback from current levels and would test investor conviction during a prolonged correction phase.
Lawmakers Keep Pressure on Legislative Process
Beyond market participants, the Clarity Act remains a priority for pro-crypto lawmakers.
Wyoming Senator Cynthia Lummis, a member of the US Senate Banking Committee, has been one of the bill’s most vocal supporters.
On Dec. 9, Lummis said she wanted to take the next step in advancing the legislation in the coming days.
She acknowledged that the process has been challenging, particularly during bipartisan negotiations.
The senator said the crypto industry “was getting a little concerned” about the bill’s progress.
She also noted that draft versions were “changed so much every few days” as lawmakers worked to reach consensus.
Despite those hurdles, expectations remain high that the Clarity Act could finally provide the regulatory certainty the industry has been seeking, even if its impact on Bitcoin’s price proves muted in the near term.
