Clarity Act Passage Uncertain Amid Congressional Gridlock

The Clarity Act, a proposed US market-structure bill for digital assets, is facing an uphill battle in Congress. Market participants are closely watching its progress as it aims to clarify oversight authority between the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

According to TD Cowen's forecast, the passage of the Clarity Act is becoming increasingly unlikely. The firm's Washington Research Group has identified political friction in Congress as a major obstacle to advancing the bill.

The conflict-of-interest provisions embedded in the bill remain a significant point of contention. Additionally, recent controversies surrounding President Donald Trump and his administration have further complicated matters for Democrats seeking to back crypto legislation.