The crypto market structure bill, or the Clarity Act, is becoming less likely to pass this year as the political environment around the legislation continues to worsen, according to investment bank TD Cowen.
"The political environment is getting worse for the Clarity Act," Jaret Seiberg, managing director at TD Cowen's Washington Research Group, said in a note on Tuesday. "It is why we remain pessimistic that Clarity will become law this year."
Notably, earlier this month, the Senate Banking Committee advanced the bill despite objections from Democrats and banks. At the time, Seiberg said that the committee vote shifted the fight to the full Senate rather than signaling a deal had been reached. He also warned that major obstacles remained, particularly around conflict-of-interest provisions.
In his latest note, Seiberg said a series of recent developments involving President Donald Trump and his administration are making it politically harder for Democrats to support the crypto bill.
'Clarity Act keeps becoming a harder vote for Democrats'
