Novogratz Sees CLARITY Act Clearing Senate Hurdle

Mike Novogratz, CEO of Galaxy Digital (GLXY), believes the Digital Asset Market Clarity Act (CLARITY Act) will pass the Senate's 60-vote hurdle. The main obstacle was a compromise over the bill's ethics provisions, which has been cleared with a White House-backed agreement.

The CLARITY Act is modeled on the Laken Riley Act, which would prohibit state attorneys general from suing the president or members of Congress, but allow them to sue the Department of Justice (DOJ) if they believed the law was not being enforced properly.

Novogratz expects Democrats to back a DOJ-enforcement framework, and predicts a floor vote could happen as soon as next month.

Not everyone at Galaxy agrees with Novogratz. The firm's Head of Research, Alex Thorn, has reduced his odds of passage this year to 30%, citing a lack of votes.