TD Cowen: Politics, not jurisdiction, is key hurdle for crypto bill

The main obstacle to passing the crypto market structure bill, known as the CLARITY Act, is a provision that would ban the president, vice president, and members of Congress from trading cryptocurrencies, according to an analysis by TD Cowen. A report cited by The Block argues that the core issue is not the jurisdictional debate over whether crypto should be regulated as a security by the Securities and Exchange Commission (SEC) or a commodity by the Commodity Futures Trading Commission (CFTC), but rather the political controversy surrounding conflicts of interest. With midterm elections approaching, the Democratic Party is unlikely to abandon the provision, as it has made President Trump's crypto holdings a central part of its campaign strategy, the analysis noted.