Jefferies sees rising crypto volatility amid CLARITY Act uncertainty

Global investment bank Jefferies warned in a recent report that the CLARITY Act still faces significant legislative hurdles in the U.S. Senate, suggesting that progress over the next few weeks could heighten volatility in the crypto market. Jefferies noted that while the bill previously passed the Senate Banking Committee with a bipartisan 15-9 vote, only about 20 legislative days remain before the August congressional recess. The bank described the timeline as extremely tight, considering the remaining steps of bill consolidation, procedural votes, reconciliation with the House version, and submission for a presidential signature. Data from the prediction market platform Polymarket shows that the probability of the bill passing by the end of 2026 has plummeted from 70% in mid-May to its current level of 48%. The report concluded that legislative delays could prolong regulatory uncertainty, potentially slowing the pace at which traditional financial institutions pursue blockchain-related business ventures.