CLARITY Act Lame Duck: Crypto Market Structure Bill Stalls in Senate
Bloomberg Intelligence Senior Analyst Nathan Dean has stated that the digital asset market structure bill, the CLARITY Act, will not return to the agenda during this Congress's lame-duck session. According to Dean, 'a lame duck is lame,' and he believes the chances of reviving the bill are slim.
The Senate failed to advance the bill before the August recess, and with lawmakers publicly taking sides, there is little room for negotiating. The CLARITY Act requires about 60 votes to end debate in the Senate, a threshold that was not met, and it's unlikely that the November elections will change the dynamic.
Regulators have signaled that if Congress does not act, administrative rules will fill the market structure gap. Dean predicts that the year-end agenda will focus on avoiding a government shutdown with a continuing resolution and adjusting the budget with little hope for success. The crypto industry is in limbo, waiting to see how regulatory changes will unfold.