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Polymarket and Kalshi Are 'Likely' Underestimating Odds of Crypto Bill Passage Due to Insider Trading Restrictions, Says Fundstrat's Tom Lee

Tom Lee, chair of BitMine Immersion Technologies, said the Clarity Act has a higher chance of passing than prediction markets like Polymarket and Kalshi indicate.

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What happened

Tom Lee, chair of BitMine Immersion Technologies, said the Clarity Act has a higher chance of passing than prediction markets like Polymarket and Kalshi indicate.

Confirmed

Global impact / market context

If the bill passes, it could tighten rules on insider trading of crypto assets, affecting how traders and firms handle confidential information and potentially limiting certain market activities.

Analyst inference

Prediction markets currently show lower odds for the bill, which may cause investors to underestimate regulatory risk. A higher actual probability could shift sentiment and pricing in crypto‑related assets.

Analyst inference

What to watch

  1. Legislative progress on the Clarity Act, such as committee votes or sponsor statements, which will clarify the true likelihood of passage. Proposed
  2. Changes in prediction market odds on Polymarket and Kalshi, indicating whether they adjust to new information about the bill. Proposed
  3. Responses from crypto exchanges and trading firms to potential insider‑trading restrictions, including policy updates or compliance costs. Proposed

Affected assets

  • BTC — Bitcoin
  • ZEC — Zcash
  • TRUMP — MAGA
  • POL — POL (ex-MATIC)

Evidence