CLARITY Act Chances Plummet as Senate Vote Looms

The fate of the CLARITY Act, a bill meant to establish clear rules for crypto trading in the US, is uncertain. A recent report from TD Cowen puts the chances of its passage at just 25%. This comes as the Senate prepares to hold a cloture vote on September 15.

According to TD Cowen analyst Jaret Seiberg, the path forward for the bill has become harder after it cleared the Senate Banking Committee in May. The report outlines three possible scenarios that could lead to the bill's failure: a procedural vote followed by stalled negotiations over ethics and anti-money laundering rules, no vote at all due to Republican reluctance to face President Trump's crypto holdings, or a 'walking dead' state where debate is avoided but the bill remains.

Stablecoin yield rules are another contentious issue. Lawmakers disagree on whether companies should be allowed to pay holders a return on stablecoins. The White House has expressed its commitment to negotiating with Democrats through September, stating it cannot afford to wait forever.