CLARITY Act Passage Odds Plummet as Senate Vote Faces Bipartisan Challenges
The fate of the CLARITY Act, a bill aimed at regulating the crypto market in the US, is uncertain after its passage odds were cut to 30% by Galaxy Research. The research firm's Head of Firmwide Research, Alex Thorn, attributed this drop to unresolved disputes between lawmakers that threaten bipartisan support needed for the bill's passage.
The CLARITY Act combines rules on crypto market structure with ethics, enforcement, custody, and stablecoin provisions in a 616-page bill. Supporters face a challenging vote calculation as they seek to overcome a Senate filibuster requiring 60 votes.
Democratic lawmakers involved in negotiations pushed for stronger ethics rules, consumer protections, illicit finance safeguards, and market integrity provisions. However, the current text has been criticized by seven Democrats, including Senators Mark Warner and Elizabeth Warren, who called for stronger measures to prevent financial crime.