TD Cowen Says Chances of CLARITY Act Passing This Year Are Dimming
Summary
- TD Cowen said the likelihood of the CLARITY Act passing this year is declining.
- Market participants say political conflict in the US Congress and conflict-of-interest provisions are key obstacles to advancing the bill.
- Still, the market is watching whether passage of the CLARITY Act could ease some of the regulatory uncertainty facing the US digital-asset industry.
Forecast Trend Report by Period
TD Cowen said the odds of the CLARITY Act, a US market-structure bill for digital assets, becoming law this year are fading. Political friction in Congress is weighing on the legislative effort.
The Block reported on May 26 that Jaret Seiberg, a managing director at TD Cowen's Washington Research Group, sees the political backdrop around the CLARITY Act deteriorating.
He said the bill is unlikely to be enacted this year. While the Senate Banking Committee advanced the measure earlier this month despite opposition from Democrats and the banking industry, that amounted more to moving the fight to the full Senate than forging a consensus.
Seiberg added that conflict-of-interest provisions remain a central obstacle.
He also said recent controversies involving President Donald Trump and his administration are making it harder for Democrats to back crypto legislation.
The CLARITY Act is designed to clarify oversight authority between the US Securities and Exchange Commission and the Commodity Futures Trading Commission. Market participants are watching whether its passage would ease some of the regulatory uncertainty hanging over the US digital-asset industry.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
