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Yoshitaka Kitao, former SoftBank CFO, said the CLARITY Act could boost institutional participation if enacted.
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GLJ Research CEO Gordon Johnson argued that Bitcoin’s decline is driven by tighter liquidity.
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Bitcoin’s returns over the last 10 years have been nearly as strong as Nvidia’s.
Bitcoin’s (BTC) sharp decline to below $70,000 in early June has ignited a heated debate among financial leaders and investors over the forces weighing on the cryptocurrency market.
Former SoftBank CFO Bets On CLARITY Act To Revive Crypto
Yoshitaka Kitao, former SoftBank CFO and the head of Japan’s SBI Group, said in a post on X that the recent weakness across the cryptocurrency market may reflect investor positioning ahead of several highly anticipated U.S. IPOs.
“Although the cryptocurrency market is declining overall, the reason is believed to be that institutional investors and others are raising funds for acquiring shares in the three major upcoming IPOs of SpaceX, Anthropic, and OpenAI, which are successively scheduled in the United States in the future,” said Kitao.
OpenAI is targeting a public debut at a valuation of roughly $852 billion to $1.1 trillion, while Anthropic is now valued at about $965 billion. SpaceX is seeking a valuation of up to $2 trillion in what could become one of the largest IPOs ever.
Kitao maintained that the market’s recent softness should be viewed through the lens of temporary capital movement rather than as a sign of lasting damage to crypto fundamentals.
He also highlighted the potential impact of U.S. legislation aimed at providing clearer oversight of digital assets. He said he believes enactment of the Digital Asset Market Clarity (CLARITY) Act would strengthen the industry’s regulatory framework and encourage broader participation in the sector.
The CLARITY Act would create clear federal rules for digital assets and define which regulators oversee the industry. The bill moved closer to becoming law after receiving bipartisan approval in a Senate committee vote last month, with a full Senate vote remaining before it can be sent to the president.
“From a fundamental perspective, there are no concerns whatsoever, and I am convinced that if the Clarity Act is enacted in the United States, it will bring a positive impact to the cryptocurrency market, including Ripple,” he posted.
At the time of writing, Bitcoin’s price edged up 0.6% to trade at $67,118, although it remains close to three-month lows. Retail sentiment towards the digital currency on Stocktwits was in ‘extremely bearish’ territory.
