Kevin O'Leary has a message for anyone betting that Washington will ride to Bitcoin's rescue: don't count on it. The celebrity investor took to X on Thursday to warn that the upcoming midterm elections could throw a wrench into the CLARITY Act's prospects and, by extension, the direction of U.S. cryptocurrency policy. He also weighed in on where Bitcoin (BTC) might be headed.
O'Leary said a shift in House control could produce "gridlock" in Washington and make the CLARITY Act harder to pass. He noted that the bill had come close to advancing, but lawmakers remained divided over whether USDC (USDC) should be permitted to offer yield. That dispute, he said, remains unresolved.
"Even if the legislation passes, I'm not convinced it automatically sends Bitcoin higher," O'Leary wrote. He said the relationship between legislation and Bitcoin's price was the question he was watching.
Why Bitcoin Is Stuck Below $80,000
In a recent interview, O'Leary explained that Bitcoin is struggling to break out of its $70,000–$80,000 range because regulatory uncertainty surrounding the stalled CLARITY Act and quantum computing risks are keeping institutional investors cautious.
He estimates that quantum concerns now deter 15% of potential Bitcoin investors, up from 10% previously. While he continues to hold Bitcoin, O'Leary says resolving its quantum security concerns could eventually open the door to a $1 million price.
Analyst Benjamin Cowen warns Bitcoin could face another Q4 sell-off ahead of next week's U.S. midterm elections. Two consecutive weekly closes below its May high suggest a potential bull trap, while the 200-day moving average near $73,000 could offer support if Bitcoin falls below its 21-week EMA.
CLARITY Act Faces Uncertain Future
The legislative uncertainty follows the CLARITY Act's failure to advance in the Senate. Earlier this month, the Commodity Futures Trading Commission (CFTC) stated that it is advancing its first set of crypto market-structure rules after Congress failed to move forward with the CLARITY Act. Michael Selig, the agency's chairman, said the regulatory effort was "just the beginning," indicating that some oversight changes could proceed without new congressional legislation.
The CLARITY Act is a proposed U.S. federal bill aimed at creating a comprehensive market structure framework for digital assets, cryptocurrencies, and blockchain infrastructure.
House Financial Services Committee Chairman Rep. French Hill (R-Ark.) said regulators were making progress, while maintaining that permanent legislation remained necessary. He also left open the possibility of the CLARITY Act's return before year-end.
