TD Cowen: Multiple Challenges Delay U.S. Crypto Legislation

ChainCatcher reports that investment bank TD Cowen stated that the disagreements surrounding the CLARITY Act extend far beyond stablecoin yields, as multiple practical obstacles could slow the legislative process. First, the Commodity Futures Trading Commission is severely understaffed, with only one commissioner currently serving. Under these circumstances, Congress is unlikely to feel comfortable assigning additional cryptocurrency regulatory responsibilities to the agency, and filling these positions alone could take months. Second, the issue of prediction markets is intensifying. Whether to include them under the bill’s regulatory scope—and potential concerns over insider trading and political conflicts of interest, including controversies tied to Trump-related projects—could prompt some Democratic lawmakers to oppose the bill. Meanwhile, ongoing controversy surrounding the Trump family’s cryptocurrency project, World Liberty Financial, is increasing the political sensitivity of the legislation, making bipartisan consensus harder to achieve. Geopolitics is also a variable: discussions about Iran potentially using cryptocurrency payments are heightening focus on anti-money laundering provisions and could lead to amendments detrimental to the industry. Additionally, some lawmakers are attempting to incorporate the Credit Card Competition Act into the bill; if pursued, this could introduce new conflicts of interest and further delay the overall legislative process.