Why Bitwise Says CLARITY Act Passage Marks the Bear Market Bottom

Bitwise has identified the passage of the CLARITY Act as a primary catalyst for the cryptocurrency market during the third quarter of 2026. The asset manager suggests that legislative progress on this market structure bill could serve as the definitive bottom for the current bear market cycle. Outlining four specific catalysts in its latest quarterly report, Bitwise emphasizes that the current period is a critical juncture for the bill's potential enactment. By providing a clear regulatory framework, the legislation is expected to resolve ongoing market uncertainty that has hindered institutional participation. This development is significant for the RWA sector, as regulatory clarity is a prerequisite for the large-scale tokenization of traditional financial assets. The firm's analysis underscores the direct correlation between legislative milestones and broader market recovery trends. Consequently, the industry is closely monitoring the bill's progress as a signal for renewed capital inflows into digital asset infrastructure.