CLARITY Act: Regulatory Unlock or Political Delay?
The White House reaffirmed its commitment to passing the CLARITY Act before the November midterms. In an interview with Yahoo Finance, Patrick Witt, Executive Director of the President’s Council of Advisors for Digital Assets, stated:
“Even if we get the CLARITY Act out of the Senate Banking Committee, it needs to be reconciled with the Senate Agriculture Committee’s portion.”
He added:
“Ultimately, there’ll be a cloture vote and a Senate floor passage vote; that’s all it takes time. I believe we’ll get this done.”
🔎 Key Sticking Point: Stablecoin Yield
The major hurdle remains stablecoin yield. Two White House-led meetings have failed to produce a compromise between crypto leaders, including Ripple’s CLO, and the banking sector. Another round of negotiations is expected next week.
Industry group The Digital Chamber emphasized preserving U.S. dollar dominance and using data-driven frameworks to assess stablecoin impact on bank deposits.
📊 Market Odds & Sentiment
Prediction markets like Kalshi price only a 36% chance of passage by June and 22% by March — signaling skepticism.
Meanwhile, Treasury Secretary Scott Bessent said positive momentum would give “great comfort to the crypto market.”
🧠 Analysis
If passed, the CLARITY Act could unlock sidelined institutional capital and significantly improve regulatory certainty. However, without consensus on stablecoin yield, political timing may push the bill deeper into election season — reducing short-term probability.
Regulatory clarity remains the market’s biggest catalyst.