Kevin O'Leary Says Bitcoin May Not 'Automatically' Rally Even If CLARITY Act Passes, Warns Midterms Could Create Washington 'Gridlock'
Kevin O’Leary said the midterm elections could influence the CLARITY Act’s prospects and the direction of U.S. cryptocurrency policy. He also weighed in on the price direction for Bitcoin .O’Leary took to X on Thursday and stated that a shift in House control could produce “gridlock” in Washington and make the CLARITY Act harder to pass.He said the bill had come close to advancing, but lawmakers remained divided over whether USDC should be permitted to offer yield. O’Leary identified that dispute as an unresolved issue."Even if the legislation passes, I’m not convinced it automatically sends Bitcoin higher," O’Leary wrote. He said the relationship between legislation and Bitcoin’s price was the question he was watching.The midterms could change the path for crypto in Washington. If the House shifts and we get gridlock, the CLARITY Act may be harder to pass. The bill came close, but the fight over whether USDC should offer yield is still unresolved. Even if the legislation passes, I’m not… Why Bitcoin Is Stuck Below $80,000In a recent interview, Kevin O’Leary says Bitcoin is out of its $70,000–$80,000 range because regulatory uncertainty surrounding the stalled CLARITY Act and quantum computing risks are keeping institutional investors cautious.He estimates quantum concerns now deter 15% of potential Bitcoin investors, up from 10% previously. While he continues to hold Bitcoin, O’Leary says resolving its quantum security concerns could eventually open the door to a $1 million price.Analyst Benjamin Cowen warns Bitcoin could face another ahead of next week’s U.S. midterm elections. Two consecutive weekly closes below its May high suggest a potential bull trap, while the 200-day moving average near $73,000 could offer support if Bitcoin falls below its 21-week EMA.CLARITY Act Faces Uncertain FutureThe legislative uncertainty follows the CLARITY Act’s in the Senate. Earlier this month, the Commodity Futures Trading Commission (CFTC) stated that it is advancing its of crypto market-structure rules after Congress failed to move forward with the CLARITY Act. Michael Selig, the agency’s chairman, said the regulatory effort was "just the beginning," indicating that some oversight changes could proceed without new congressional legislation.The CLARITY Act is a proposed U.S. federal bill aimed at creating a comprehensive market structure framework for digital assets, cryptocurrencies, and blockchain infrastructure.The House Financial Services Committee Chairman Rep. French Hill (R-Ark.) said regulators were , while maintaining that permanent legislation remained necessary. He also left open the possibility of the CLARITY Act’s return before year-end.This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.Preview Image via Shutterstock