#CLARITYActEntersFinalCriticalStage

The CLARITY Act, a cryptocurrency regulation bill in the US, has reached a critical stage. Senate Majority Leader John Thune wants to begin Senate deliberations before the summer recess on August 7th. However, he says it will be difficult for the bill to become full law before that date.

* The crypto sector is supportive. Three major cryptocurrency trading associations have sent a joint letter to the Senate supporting the bill's progress.

* The House of Representatives previously passed the bill with bipartisan support. Former Financial Services Committee Chair Patrick McHenry stated that the question is "not whether it will happen, but when." * Two major hurdles remain:

1. Democrats want to add ethics rules that would limit the president and senior officials (and their families) from profiting from crypto assets.

2. 60 votes are needed to overcome the filibuster in the Senate. Republicans only have 52 seats; therefore, the support of at least a few Democrats is necessary. * The prediction market Polymarket is pricing in a 37% probability of the law becoming law in 2026. * If no progress is made before the August holiday, the process is expected to extend into September or later.

Impacts for the crypto market:

The passage of the CLARITY Act could create a clearer framework for how and by which institution digital assets will be regulated in the US. This could reduce regulatory uncertainty for the sector in the long term. However, since the law has not yet been enacted and political obstacles remain, the outcome is uncertain in the short term.