Legislative stalemate on Clarity Act
The Clarity Act, a long-awaited crypto market structure bill, faces a narrowing window for passage before the Senate breaks for a month-long recess. Senator Cynthia Lummis stated the legislation could have passed months ago but is being unfairly delayed, with ethics rules emerging as a dividing issue among lawmakers.
Treasury Secretary Scott Bessent has publicly urged the Senate to immediately vote on the bill, invoking Bitcoin creator Satoshi Nakamoto's principles and accusing Democrats of delaying the legislation for political reasons. The Major Cities Chiefs Association, a professional law enforcement group, has also backed the Clarity Act, adding pressure ahead of the recess.
Financial institutions have taken note of the deteriorating prospects. JPMorgan stated that fading odds for U.S. market structure legislation remove a key catalyst for digital assets, despite ongoing progress in tokenization and institutional adoption.
