TD Cowen Says Odds of CLARITY Act Passing This Year Are Fading
Summary
- TD Cowen said the odds of the CLARITY Act, a U.S. crypto market structure bill, passing this year are fading.
- Seiberg said that despite progress in the Senate Banking Committee, reaching a consensus remains difficult because of conflict-of-interest provisions and a worsening political environment.
- Market participants are watching whether the CLARITY Act, which would clarify oversight authority between the SEC and the CFTC, could ease some regulatory uncertainty in the U.S. crypto industry.
Forecast Trend Report by Period
The chances of the CLARITY Act, a U.S. crypto market structure bill, becoming law this year are diminishing, TD Cowen said. Political divisions in Congress are weighing on the legislative push, the market has assessed.
Jaret Seiberg, a managing director at TD Cowen's Washington Research Group, told The Block on May 26 that the political environment surrounding the CLARITY Act is getting worse.
He said the bill is unlikely to be enacted this year. While the Senate Banking Committee advanced the measure earlier in May despite opposition from Democrats and the banking industry, that amounted more to sending the debate to the full Senate than reaching a consensus.
Seiberg added that conflict-of-interest provisions remain a key obstacle. Recent controversies involving President Donald Trump and his administration are also making it harder for Democrats to back crypto legislation, he said.
The CLARITY Act would clarify oversight authority between the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission. Market participants are watching whether its passage could ease some of the regulatory uncertainty facing the U.S. crypto industry.
