TD Cowen analysts questioned the passage of the cryptocurrency market bill in the USA - ForkLog: cryptocurrencies, AI, singularity, the future

# TD Cowen Analysts Doubt US Crypto Market Legislation Passage

The TD Cowen investment bank has downgraded its forecast for the passage of the cryptocurrency market structure bill (CLARITY Act). Analysts believe it is unlikely that the bill will be approved this year, reports The Block.

According to TD Cowen Managing Director Jared Zaber, the political situation surrounding the initiative has worsened. Previously, the Senate committee responsible supported the bill despite objections from Democrats and banks. However, this does not mean final agreement from all parties, only that the dispute has been moved to the legislative chamber.

Experts highlighted several factors preventing Democrats from supporting the CLARITY Act:

• Trump’s Fund: President Donald Trump’s settlement with the IRS created a $1.77 billion fund for “political pressure victims.” Democrats see this as a dangerous precedent of using government funds;
• Connections with CFTC: A New York Times investigation pointed to possible influence of crypto lobbyists and Trump’s family on the regulator;
• Conflict of Interest: Information about thousands of stock transactions made in Trump’s name prompted Democrats to demand stricter anti-corruption rules in the crypto legislation.

Republicans are also in a difficult position. They will have to either vote against amendments addressing conflicts of interest related to Trump or delay the process.

TD Cowen believes lawmakers will prefer to wait until the scandals are over. If the bill is not passed before the August recess, consideration could be delayed until 2027. In that case, final industry regulation rules would not be introduced before 2029.

Recall that on May 14, the Senate Banking Committee approved the bill with a vote of 15 to 9.