Crypto rally on CLARITY Act hopes faces setback amid stakeholder deadlock, risking sharp 35%+ drop.

Bitcoin and related assets like IBIT have rallied on optimism about the CLARITY Act, but deep disagreements among key stakeholders including the ABA, Treasury, and crypto community make the bill's passage unlikely. Even if a compromise is reached, there may not be enough time for the legislation to become law. This uncertainty risks a significant crypto market drop of over 35%. Traders might consider short-term strategies like using SBIT to benefit from a potential downturn while avoiding exposure to correlated ETFs like IBIT.