Galaxy Cuts CLARITY Act Odds to 50% Amid Tight Senate Schedule
Vexoda Newsroom
Galaxy Digital has reduced its chances of the CLARITY Act passing in 2026, citing a crowded legislative calendar and limited floor time. The bill aims to regulate digital assets but faces opposition f
In a recent update, Galaxy Digital cut its probability of the CLARITY Act becoming law in 2026 down to 50%, signaling growing concerns about the bill's prospects due to an increasingly tight legislative schedule. The CLARITY Act seeks to establish regulatory frameworks for digital assets but has faced criticism from various quarters.
Alex Thorn, head of firmwide research at Galaxy Digital, attributed this downgrade primarily to the lack of a unified Senate Banking-Agriculture text and no set floor schedule. Moreover, the competition for limited floor time in an already busy legislative calendar is intensifying due to other pressing bills like the SAVE Act and essential legislation such as Section 702 reauthorization and the National Defense Authorization Act.
The CLARITY Act has cleared a significant hurdle by passing through the Senate Banking Committee but now faces challenges in securing sufficient floor time. The US Senate’s legislative calendar, which includes periods of work from Monday to July 10 and an August recess starting on Aug. 8, further narrows the window for lawmakers to debate and pass the bill.
Despite bipartisan support, the CLARITY Act is encountering resistance. Over 200 crypto companies and organizations had earlier urged Congress to pass it in a letter shared by Stand With Crypto. However, concerns have also been raised about potential oversight gaps that could be created regarding illicit activities if the act were to become law.
This development highlights the broader implications for digital asset regulation. The CLARITY Act represents one of several efforts globally aimed at addressing regulatory challenges in the crypto space. Other initiatives include BIS warnings on stablecoins and EU watchdog EBA detailing significant fines against non-compliant firms, underscoring the urgency of comprehensive regulations.
Traders should monitor upcoming hearings for the CLARITY Act, scheduled for July 17th, as well as other legislative developments that could impact digital asset markets. The outcome will not only shape regulatory landscapes but also influence investor sentiment and market dynamics in the coming months.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.