Svmuu News: The CLARITY Act—the long-awaited digital asset regulatory bill in the U.S. crypto industry—has hit a snag. Senate Majority Leader John Thune stated that the Senate is not expected to pass the bill before its August recess.
The CLARITY Act aims to establish a clearer regulatory framework for digital assets and facilitate the integration of blockchain and crypto assets into the mainstream financial system. Previously, the bill had undergone multiple rounds of negotiations between the crypto industry and opposing forces such as the banking sector, and was at one point considered close to passage.
However, recent controversies surrounding conflicts of interest related to U.S. President Donald Trump and his family’s involvement in crypto projects have become a new obstacle to the bill’s progress. Democrats are demanding that ethical provisions restricting government officials from profiting from crypto transactions be included in the bill, a move Republicans have previously opposed.Prediction market data shows that the probability of the CLARITY Act passing this year has dropped significantly. According to Polymarket, as of Friday, that probability stood at approximately 37%, far below the level of over 80% recorded earlier this spring.
Crypto policy organizations and industry insiders believe the current delay is largely driven by political factors surrounding the U.S. midterm elections. Ron Hammond, Head of Policy and Advocacy at Wintermute, stated that while the votes to support the bill may still exist, “election politics are louder.” He believes there may still be a window to push for the bill’s passage after the November elections.
Analysts point out that if Congress needs to prioritize major issues such as government funding and defense before the end of this term, the CLARITY Act may be further sidelined. With the U.S. political landscape likely to shift after the midterm elections, the outlook for crypto regulatory legislation remains highly uncertain. (Fortune)