CLARITY Act Timeline Remains Uncertain Amid Policy Disputes and Key Deadlines

The prospects of the Crypto Market Structure Bill (CLARITY Act) passing before the November midterm election remain uncertain, according to investment bank TD Cowen. Senate leaders are expected to consider the bill in mid-July, but unresolved policy disputes could delay a floor vote.

TD Cowen's managing director Jaret Seiberg warned that several obstacles must be overcome before the bill can clear the Senate. He identified July 24 as a key deadline for action before the House leaves for its August recess.

The White House has continued meeting with stakeholders over concerns from law enforcement agencies about software developers' liability if their tools are used for money laundering or other illicit finance. Seiberg said resolving these concerns would improve the bill's prospects, but he does not expect changes to the stablecoin yield provisions despite ongoing opposition from banks.