Odaily Planet Daily report: The progress of the long-awaited U.S. digital asset regulatory bill, the CLARITY Act, has encountered obstacles, as Senate Majority Leader John Thune stated that the Senate does not expect to pass the bill before its August recess.
The CLARITY Act aims to establish a clearer regulatory framework for digital assets, facilitating the integration of blockchain and crypto assets into the mainstream financial system. Previously, the bill underwent multiple rounds of negotiations between the crypto industry and opposing sectors such as banking, and was once considered close to passage.
However, recent controversies surrounding former U.S. President Trump and his family’s involvement in crypto projects have become a new obstacle to the bill’s progress. Democrats are demanding the inclusion of ethical provisions in the bill to restrict government officials from profiting from crypto transactions, while Republicans had previously opposed such measures. Predictive market data shows that the probability of the CLARITY Act passing this year has significantly declined; according to Polymarket, as of Friday, the probability stood at approximately 37%, far below the peak of over 80% earlier this spring.
Crypto policy experts and industry insiders believe the current delay is more influenced by political factors surrounding the U.S. midterm elections. Ron Hammond, Head of Policy and Advocacy at Wintermute, said that support for the bill may still exist, but “the voice of election politics is louder.” He believes a window for advancing the bill could still open after the November elections.
Analysts note that if Congress needs to prioritize major issues such as government funding and defense before the end of its current term, the CLARITY Act could be further sidelined. With the U.S. political landscape potentially shifting after the midterm elections, the prospects for cryptocurrency regulatory legislation remain highly uncertain. (Fortune)