Bernstein: Progress on CLARITY Act exceeds market expectations, positive surprises remain unpriced

Bernstein analysts report that Republican progress on the CLARITY Act in the U.S. Senate has surpassed market expectations. The final draft incorporates 126 substantive changes proposed by Democrats, and former President Trump has accepted most bipartisan ethics proposals. Bernstein notes that the market is currently pessimistic regarding the upcoming procedural vote, suggesting that any positive outcome is not yet priced in. While failure to pass the bill could lead to a market correction, analysts believe it would still accelerate the regulatory rulemaking process for the SEC and CFTC.