TD Cowen: "CLARITY Act unlikely to pass without direct intervention by Trump"

JH Kim

Summary

TD Cowen said it will be difficult for the crypto market structure bill (CLARITY Act) to pass without direct intervention by U.S. President Donald Trump.
Jaret Seiberg said industry infighting and political obstacles are making it difficult for the market structure bill to pass Congress.
TD Cowen said stablecoins are likely in the near term to exert greater competitive pressure on money market funds (MMFs).

Research and brokerage firm TD Cowen said the crypto market structure bill, the CLARITY Act, would be difficult to pass without direct intervention by U.S. President Donald Trump.

According to crypto-focused media outlet The Block on the 2nd (local time), TD Cowen Managing Director Jaret Seiberg wrote in a report that "clear intervention by President Trump is needed for the bill to pass Congress," adding that "industry infighting and political obstacles are making it difficult to reach a consensus."

He noted that the current debate has moved beyond whether to allow interest and reward payments on stablecoins. Seiberg said, "Offering interest or rewards is ultimately inevitable," and explained that "the key issues are when platforms will be granted that authority and what level of regulatory oversight they will accept."

He also assessed that, from the banking industry's perspective, stablecoins are more likely in the near term to exert greater competitive pressure on money market funds (MMFs) than to threaten deposit rates. He added, "Until stablecoins establish themselves as an everyday means of payment, their impact on bank deposits will be limited."