The low chance of approval before November has several reasons. The US Congress is currently in recess, meaning there are no plenary sessions and legislative processes are stalled. Furthermore, the midterm elections are approaching, which often leads to a focus on campaigning and less on finalizing complex legislation. Grieve notes that the legislative agenda is often overcrowded and that significant political will is needed to push such a proposal through quickly. Recess: Congress is in recess in August, which slows down legislative progress. Elections: The approaching midterm elections in November shift lawmakers' focus to campaigns. Complexity: The regulation of crypto assets is a complex topic that requires much debate and consensus.

What does this mean for the sector?

The delay of the Clarity Act means that the crypto sector in the US will temporarily have to continue operating under the current, often vague, regulations. This can lead to ongoing uncertainty and potential enforcement actions by regulators such as the SEC (Securities and Exchange Commission). A clear regulatory framework is seen by many as essential for the further growth and innovation within the sector. Without this framework, companies and investors remain in the dark, which can hinder the adoption and development of new crypto applications. We will continue to monitor this, as the call for clarity remains strong.

Clarity Act Has Only 10% Chance Before US Midterms

Crypto News

Clarity Act Has Only 10% Chance Before US Midterms

The US Clarity Act, a bill intended to provide clarity on the regulation of crypto assets, is stuck in Congress and, according to an expert, has only a small chance of passing before the midterms.

Sanne VermeulenAug 19, 20262 min read

Clarity Act Heeft Slechts 10% Kans Voor Amerikaanse Midterms

Written by

Sanne Vermeulen

Market Editor · Amsterdam (NL)

Sanne monitors crypto markets, ETF flows, and institutional inflows in Europe. She previously wrote about capital markets and translates market data into understandable stories.

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