Crucial Role Of The CLARITY Act In Avoiding A New October 10 Crypto Crash, Expert Explains

Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. The notorious crypto crash on October 10 of last year sent shockwaves through the market, resulting in the largest liquidation event in history with nearly $20 billion in losses. This catastrophic event ignited significant criticisms and fears among investors regarding the stability of the cryptocurrency market. 

However, the upcoming crypto market structure bill, known as the CLARITY Act, is being touted as a potential safeguard against future crashes. Market Manipulation In Crypto Could Plummet 

Market expert Crypto Rover recently took to social media to express optimism about the CLARITY Act as the Senate prepares for a markup on January 15. Accordingto Rover, this crypto bill could reduce market manipulation in the crypto space by an impressive 70% to 80%.  Related Reading 3 Vital Factors Needed For A Lasting 2026 Crypto Surge, Bitwise CIO Unveils 21 hours ago

He noted the devastating effects of the October 10 event, describing it as a “massacre” for crypto holders, many of whom lost their life savings without clear answers about who was ultimately responsible for the chaos.

Rover is confident that with the implementation of the CLARITY Act, the cryptocurrency market could begin operating more like traditional financial markets (TradFi).  Institutional Investment Set To Surge 

Once the CLARITY Act passes in the Senate, Rover asserts that it will move to the floor for a full vote before returning to the House for final approval and eventually reaching President Trump’s desk. 

He further suggested that this entire process could take one to two months, potentially allowing the CLARITY Act to be signed into law by March 2026. Related Reading VanEck Predicts Bitcoin Could Reach $2.9 Million In New Long-Term Capital Report 1 day ago

Should this come to fruition, it is expected to open the floodgates for institutional investment in the crypto market, fundamentally changing the alleged “daily market manipulation” witnessed in the sector.  The 1-D chart shows BTC’s Friday retrace toward $90,000. Source: BTCUSDT on TradingView.com

At the time of writing, Bitcoin is trading at $90,357, having erased some of the gains seen at the beginning of the week when the market’s leading crypto surged towards a two-month high of $94,800. 

Featured image from DALL-E, chart from TradingView.com