Fundstrat co-founder Tom Lee says prediction markets on Polymarket and Kalshi may be significantly underestimating the CLARITY Act’s chances of becoming law.
Lee endorsed analysis from Fundstrat Head of Digital Asset Strategy Sean Farrell, arguing that private conversations with policymakers painted a far more optimistic picture than current market odds suggest.
The assessment adds fresh momentum to Lee’s long-standing bullish outlook on Ethereum, which he has tied to both Bitcoin’s performance and accelerating institutional adoption.
Lee has also highlighted a separate catalyst for ETH, describing the asset as an “AI downstream” beneficiary at a time when memory-related investments are declining.
Under that theory, Ethereum stands to benefit indirectly from artificial intelligence adoption through stablecoin payments, tokenized assets, and machine-to-machine transactions.
Lee, who also serves as chairman of BitMine, has maintained one of the most aggressive price targets for Ethereum among mainstream financial analysts.
His long-term target of $22,000 per ETH would require the asset to rise approximately 1,040% from its current price levels, representing an extraordinary appreciation from where the token trades today.
Before approaching that figure, Ethereum would first need to reclaim the $2,000 and $3,000 levels, then surpass its record of approximately $4,946 set in August 2025.
Even after matching that prior peak, ETH would still need to climb an additional 345% to reach Lee’s $22,000 target, underscoring just how ambitious the projection remains.
In the near term, Lee has predicted Ethereum could reach between $7,000 and $9,000, though he acknowledged that further volatility could emerge before it reaches those levels.
The CLARITY Act, if passed, is widely expected to provide greater regulatory certainty for digital assets, a development the crypto industry has long argued is necessary for sustained institutional participation.
Lee’s comments suggest that the legislative pathway may be more advanced than public prediction markets are currently pricing in, a gap that could itself become a market catalyst if the bill progresses.
Fundstrat’s positioning on Ethereum reflects a broader thesis that the network’s infrastructure role in decentralized finance and tokenized real-world assets will drive long-term demand regardless of short-term price swings.
