CLARITY Act Advances Further Than Expected, Market Yet to Price In Positive Outcome

The CLARITY Act, a U.S. crypto market-structure bill, is moving further than expected in Congress. According to Bernstein, a positive outcome for the bill has not been priced into the market.

Senate Republicans released their final draft of the bill on September 14, which included 126 substantive amendments requested by Democrats. The bill requires public officials, including the president, to divest crypto holdings or place them in a blind trust and also allows state attorneys general to enforce related rules.

Bernstein described the ethics package as 'likely the best proposal realistically available.' They also noted that because the White House accepted enforcement authority for state attorneys general, it may still be able to win support from some Democratic lawmakers and continue negotiations ahead of the final vote.

A procedural Senate vote scheduled for September 15 is set to be the first key test. The cloture vote needed to move the bill forward requires 60 votes. Republicans hold 53 seats in the Senate, meaning they would need support from Democrats or independents even if every Republican votes in favor.