Clarity Act Odds Plummet to 25% as Democrats Ponder Trump Crypto Loophole

Analysts at TD Cowen have put the odds of the Clarity Act passing this year at 25%. The bill, aimed at regulating the US crypto market structure, has been making its way through Congress.

The revised rules tied to stablecoin yields were viewed favorably by TD Cowen. However, it remains unclear whether moderate Democratic lawmakers will accept these changes.

One key variable in the Clarity Act's path is how Democratic lawmakers respond to a provision that could still allow US President Donald Trump to invest in crypto assets through a trust.