CLARITY Act Approval Chances Plunge to 31% Amid Trump-Backed Regulatory Deadlock

The CLARITY Act has been making progress in the US Senate, but its chances of approval have taken a hit. The bill aims to bring clarity to cryptocurrency regulations and has passed the Senate Banking Committee with bipartisan support.

Last year, the House of Representatives passed its version of the bill with a 294-134 vote. In May, the Senate Banking Committee voted in favor of the bill, but it still needs more than just Republican support to pass.

Democrats have been pushing for stronger restrictions on senior government officials profiting from cryptocurrency businesses, and banks are concerned about interest-like payments or rewards being offered on customers' stablecoin balances.

The odds of the bill passing have dropped to 31% after Trump's latest meeting failed to make significant progress. Analysts believe it's even less likely than that due to the upcoming November midterm elections, which may change control in Congress.