CLARITY Act Passage Chances Plummet to 10% Amid Congressional Gridlock

The CLARITY Act, a bipartisan bill aiming to regulate the US cryptocurrency market, is facing significant challenges in Congress. According to Galaxy Research, the likelihood of its passage by 2026 has been reduced to 10%. The research firm notes that the bill's progress has slowed due to political disagreements and lobbying from industry groups.

The biggest obstacle to the bill is reportedly the lack of consensus on ethical guidelines for public officials' activities in the cryptocurrency sector. Additionally, pressure from local banks has weakened support among some Republican senators.

Galaxy Research states that Senate Majority Leader John Thune failed to secure the 60 votes necessary to pass the filibuster before the August recess. The bill is scheduled to be brought back to the Senate's attention in September, but with a very narrow window for passage due to upcoming midterm elections.