CLARITY Act Passage Odds Plummet Amid Uncertainty
The passage of the CLARITY Act in the coming months is looking increasingly uncertain. According to TD Cowen Washington Research, the odds of enactment are now at just 25%. This drop in prospects for the bill's passage highlights significant hurdles that remain before it can be finalized.
The main sticking points include stablecoin rewards and ethics provisions. Banks are pushing for tighter rules on stablecoin rewards, while the crypto industry has voiced concern about reopening terms that had already been agreed. Ethics provisions tied to potential conflicts of interest involving President Donald Trump's crypto businesses also remain central to the negotiations.
A compromise is being discussed that would bar public officials and their spouses from issuing digital assets, but agreement on this point remains elusive. Anti-money laundering (AML) and consumer-protection provisions are also unresolved amid opposition from some Democratic lawmakers who argue the bill lacks sufficient safeguards against illicit finance.