The US cryptocurrency CLARITY Act is at risk of collapse as the banking sector continues to reject compromise proposals from Congress and the White House. The time window for legislators before the midterm elections is shrinking, which could effectively terminate the bill within this session.
Banking Sector Hinders CLARITY Act, Refuses to Negotiate
The CLARITY Act is a proposed US legislation aimed at defining which digital assets are classified as securities and which are commodities. It represents the most significant comprehensive regulatory attempt for cryptocurrency to date, but the banking sector has turned it into a legislative stalemate.
Senators Proposed Compromise on Stablecoin Earnings, Banks Still Refuse
The countdown to the midterm elections is underway.
The legislative calendar is the real deadline. As the midterm elections approach, Congress historically enters a period where unfinished bills are often shelved. Lawmakers shift their focus to campaigning, and controversial legislation that has not gained sufficient momentum will be indefinitely postponed.
If the bill fails, the US cryptocurrency industry will face ongoing regulatory challenges. Institutional investors who have been waiting for a legal framework to deploy capital may remain on the sidelines, while competitors in jurisdictions with clearer legal rules will continue to gain market share.