CLARITY Act Stalls in Senate as Crypto Sector Continues Without It

Galaxy Research has assessed that the cryptocurrency sector will continue to operate without the Digital Asset Market CLARITY Act, which failed to advance in the US Senate on Tuesday with a 49-50 vote.

The bill's prospects had been reduced by Galaxy from 25% to as low as 10% after the Senate left for August recess without a vote, and it is now seen as unlikely that efforts to revive the legislation before the October recess will be successful.

The research firm pointed to recent regulatory activity continuing without the bill, citing CFTC no-action relief for certain front-end DeFi developers and the SEC's tokenized-stock innovation exemption as examples.