The CLARITY Act could remain stalled until 2028 as Democrats prepare to take a stronger role in shaping US crypto policy. Senator Elizabeth Warren and returning lawmaker Sherrod Brown are expected to push for tougher oversight of the industry.
Meanwhile, investigations into President Donald Trump’s crypto dealings could take priority over market structure legislation.
Democrats Could Push Tougher Crypto Rules
TD Cowen analyst Jaret Seiberg said the election results could weaken the crypto industry’s influence in Washington. He expects little progress on the CLARITY Act over the next two years.
Related: Trump Media Moves $343M in Bitcoin to Crypto.com: Is a Major BTC Sell-Off Coming?
“We did not think Clarity could advance over the next two years. This makes us more confident in our prediction,” Seiberg said.
The outlook comes despite more than $200 million in crypto industry spending on midterm campaigns. Fairshake, an industry-backed political group, won 29 of the 34 contests it supported, according to reports.
Regulatory Progress Could Continue Without CLARITY
Coinbase executive Kara Calvert pointed to continued bipartisan support, with Stand With Crypto counting 228 pro-crypto House members and 19 senators.
However, Circle’s Dante Disparte warned that comprehensive legislation could take longer. He said regulators could still advance stablecoin and tokenization rules using existing authority.
CoinShares also expects greater pressure on US-listed crypto companies, particularly those requiring regulatory approval to expand.
Related: Ripple CLO Says Bipartisan Support for Crypto Remains After U.S. Elections
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