CLARITY Act Passage Odds Remain Uncertain Amidst Legislative Delays

Galaxy Digital has issued a research report predicting the probability of the CLARITY Act passing this year. The firm's Head of Research, Alex Thorn, noted that while there is still a chance for the bill to pass, several unresolved issues remain live and could complicate the path forward.

The CLARITY Act must navigate through multiple legislative processes before reaching the President's desk, including a markup from the Senate Banking Committee. However, the committee's Chair, Tim Scott, has identified three key hurdles: stablecoin yield language, DeFi provisions, and securing support from all Republicans on the committee.

Galaxy Digital highlighted several additional issues that remain unresolved, such as ethics provisions, SEC-related concerns, and provisions around developer protections. Thorn noted that every week of delay compresses the window for the sequential steps required to pass the bill.