Grayscale Says Clarity Act Unlikely to Pass This Year

The Clarity Act, one of the digital-asset industry's most closely watched bills, failed to come to a vote in August, raising doubts about its chances of passing this year.

Jack Pandl, Grayscale's head of research, wrote in an Aug. 8 report that agreement on the Clarity Act is theoretically possible. But given the Senate's schedule and the midterm elections, the bill is unlikely to pass this year.

Even so, he said the bill's failure to pass would not have an immediate effect on the digital-asset industry. Activity on major blockchains would continue, as would demand for Bitcoin as a store of value and growth in the stablecoin payments market.

Pandl added that the bigger risk is to new investment and capital formation in the US. He wrote that the Clarity Act would create a comprehensive supervisory framework for the US digital-asset market, and that without clear rules, companies could move overseas to jurisdictions with more favorable business environments.