Clarity Act Passage Chances Plummet to 25% Amid Senate Delay
The long-awaited Crypto Clarity Act has suffered a setback in its passage through the US Senate. According to TD Securities, the bill now only has a 25% chance of being passed this fall. The delay was caused by a vote on the bill being pushed back until September due to last week's recess.
TD Securities stated that while the bill is not dead, the path forward for it becoming law is harder than before. The bank assigned a 75% probability that the Clarity Act fails to become law this fall. One possible outcome could be for cloture to pass in September but then for Republicans to block Democratic amendments on the ethics and AML sections.
The bill, which was passed by the House of Representatives last year, aims to create a federal rulebook for US cryptocurrency markets. It contains language banning government officials from promoting or making money from crypto. Major financial institutions such as Goldman Sachs and Fidelity have backed the bill, along with law enforcement groups.