Bernstein said that the Senate’s failure to pass the legislation could trigger an immediate negative “industry knee-jerk reaction,” which may result in another leg down for Bitcoin and the broader crypto market. “From a tactical standpoint, we expect the crypto market to bottom and start showing momentum towards late Q3 and early Q4 prior to the mid-terms,” Bernstein analysts wrote in a Monday report shared with Cointelegraph. The initiative aims to create a workable regulatory framework for digital assets using existing agency authority while Congress finalizes crypto market legislation under the CLARITY Act. CLARITY Act odds decline to 31%Bernstein’s skepticism is supported by prediction market traders who are betting against the passage of the CLARITY Act before the end of 2026. On June 26, Galaxy Digital cut its odds of the CLARITY Act becoming law in 2026 to 50%, warning that the US Senate is running out of time to move the crypto market structure bill before its August recess.