Novogratz Sees CLARITY Act Clearing Senate Hurdle Amid Compromise

Galaxy Digital's CEO Mike Novogratz is optimistic about the CLARITY Act's chances in the Senate, predicting it will clear the 60-vote hurdle. He cites a compromise on the bill's ethics provisions as key to its passage.

Novogratz believes Democrats will back a DOJ-enforcement framework, which would allow state attorneys general to sue the Department of Justice if they believe the law is not being enforced properly.

The CLARITY Act has been stuck in limbo for weeks due to disagreements over whether its ethics rules would apply to President Trump, whose family owns significant crypto assets. However, a last-minute deal on this issue has been reached, with Sens. Cynthia Lummis and Bernie Moreno agreeing to White House language on the president's ethics.

Not everyone at Galaxy is as confident in the bill's prospects. Head of Research Alex Thorn reduced his odds of passage this year to 30%, citing a lack of votes for the updated text of the bill.