Global Digital Assets — Crypto: Clarity fails - what next?

The report comments on the failure of the U.S. CLARITY Act to advance in a procedural cloture vote. Given the limited time window and the breakdown of negotiations over the ethics provision, Bernstein would not pin hopes on a re-vote. Moving forward, the catalysts for the sector are expected to be driven by specific rule-making by the CFTC/SEC, which is expected to be aggressive and swift to make up for time lost negotiating the CLARITY Act. Bernstein would be buyers of weakness in crypto stocks, specifically those linked to continued adoption of new real-world products such as tokenization, perpetual futures, stablecoins and prediction markets, with preferred names Robinhood, Circle and Figure. Stablecoins should be just fine since they are governed by the GENIUS Act and will continue to earn deposit-like yields;