CLARITY Act Passage Odds Plummet as Senate Vote Delayed

The US crypto regulatory bill, CLARITY Act, faces significant roadblocks in the Senate, according to Galaxy Research. The odds of its passage have dropped to 10% as negotiations remain unresolved.

The Senate Banking Committee cleared the bill in May, but several disputes have weakened support among senators. Unresolved ethics controls and pressure from community banks are among the concerns that have stalled progress.

Lawmakers also debated developer protections under the Blockchain Regulatory Certainty Act, while concerns from illicit finance groups added another obstacle during negotiations.

The Senate Majority Leader John Thune has declined to schedule a vote before the August recess, pushing the consideration of the bill to September 14. However, Galaxy Research notes that this leaves limited time for legislation, with the Senate planning to adjourn around October 2 for midterm election activity.