Bernstein suggests the failure could actually accelerate rulemaking by both the SEC and CFTC through their joint initiative, Project Crypto, potentially delivering the regulatory clarity the industry has been begging for, just through the back door instead of the front. The CLARITY Act’s fading pulseThe Digital Asset Market Clarity Act, formally known as H.R. But despite that refresh, prediction-market odds for the CLARITY Act passing in 2026 have dropped to roughly 31%. Initiated in 2025, Project Crypto started as an SEC-led initiative under Chairman Paul Atkins before evolving into a coordinated effort involving both the SEC and CFTC by early 2026. What this means for investorsBernstein expects the CLARITY Act’s failure to generate short-term volatility in digital asset markets.