According to CoinMeta, as reported by Cointelegraph, wealth management firm Bernstein stated that the chances of the digital asset market CLARITY legislation passing are declining, as the U.S. Senate will begin its summer recess this weekend, which could lead to another decline in crypto valuations. Bernstein pointed out that the Senate's failure to pass the bill could trigger a "knee-jerk reaction" in the industry, resulting in another drop for Bitcoin and the broader crypto market. Bernstein analysts mentioned in their report on Monday that, from a tactical perspective, they expect the crypto market to bottom out at the end of the third quarter and the beginning of the fourth quarter and then start to show momentum. At the same time, analysts said that the Senate's failure to pass the bill could prompt regulators, including the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), to adopt more proactive policies, which may accelerate the formulation of rules related to project cryptocurrencies.