Clarity Act Stalls in Senate as Crypto Markets Brace for Selloff

The Clarity Act, a comprehensive piece of U.S. crypto market structure legislation, is stalled in the Senate due to disagreements over several provisions.

Negotiations have been ongoing since it cleared the Senate Banking Committee in spring 2026, but the bill's fate remains uncertain with prediction markets giving it only a 37% chance of passing this year.

Failure to pass the Clarity Act would likely trigger another selloff across digital assets, according to Bernstein, who also expects regulators to accelerate rulemaking under Project Crypto if the bill fails.

JPMorgan warned that further delays risk pushing tokenization onto traditional financial infrastructure instead of public blockchain networks, which could have a structural impact on the entire crypto industry.