Clarity Act may reclassify Dogecoin, opening institutional investment opportunities

Clarity Act Impact on Crypto

  • The Clarity Act suggests that any cryptocurrency included in a regulated exchange-traded product (ETP) by January 1, 2026, will not be classified as a security.
  • This change affects Dogecoin, aligning it legally with Bitcoin and Ethereum due to its existing ETP exposure.
  • If passed, the bill would allow institutional funds to hold DOGE without needing SEC disclosures.
  • The Senate Banking Committee will debate the bill this Thursday.

DOGE Price Analysis

  • Dogecoin trades near $0.14, within a compression pattern between a rising base ($0.10) and falling resistance from the 2024 high.
  • The demand zone between $0.09 and $0.11 has held multiple tests; a break below could target $0.07, indicating a potential 25-30% decline.
  • A weekly close above $0.16 could shift momentum towards buyers, with potential upside targets at $0.50 and $1.

Dogecoin Chart

Future Prospects for DOGE

  • A 100x increase would require Dogecoin to reach over $14, demanding full market cycle expansion, increased institutional allocation, and higher total crypto market cap.
  • The legal clarity draft is essential for removing barriers and fostering long-term growth potential for Dogecoin.