TD Cowen: CLARITY Act unlikely to pass before midterm elections

TD Cowen has predicted that the U.S. CLARITY Act is unlikely to pass before the November midterm elections. Jaret Seiberg, Managing Director at TD Cowen's Washington Research Group, explained that if the bill does not pass before August, it is questionable whether it can be addressed during the fall session ahead of the midterms. He noted that Democrats are expected to force votes on amendments that could be politically difficult for Republicans, who are only likely to take that risk if they are confident President Donald Trump will sign the final bill. Furthermore, Democrats are pushing for ethics rules to ban cryptocurrency business activities for public officials and their families, including the president, but Trump has shown no willingness to compromise. It remains uncertain if Republicans have enough votes to defeat such an amendment. Seiberg also pointed to concerns from law enforcement agencies that a provision in the bill easing liability for self-custody software developers could create loopholes for supervising and investigating illegal activities like money laundering.