CLARITY Act Passage Odds Plummet as Regulatory Roadblocks Mount

The passage of the CLARITY Act, a proposed US crypto regulation bill, is now seen as increasingly unlikely by Galaxy Research. The firm has slashed its probability estimate to just 10%, citing unresolved ethical questions and disagreements over stablecoin yields.

According to Galaxy's analysis, three major obstacles are blocking progress on the bill: insider treatment and disclosure issues, a disagreement over yield-generating stablecoins, and the regulatory status of decentralized protocol developers. These long-standing challenges have accumulated without resolution, leading Galaxy to revise its projections downward.

The available legislative window in September will be particularly narrow, with Senators juggling competing priorities. This makes it unlikely that even a last-minute agreement on outstanding sticking points would guarantee a vote before the session ends.