Crypto journalist Eleanor Terrett said that given the current process, it is “almost impossible” for the Clarity Act, which is central to the regulation of digital assets in the United States, to be activated before July 4.
According to Terrett, there remain several significant hurdles to overcome in Congress before the bill can be passed quickly. These include resolving bipartisan differences over ethics provisions, revising controversial sections of the Agriculture Committee text, harmonizing the House and Senate versions, getting 60 votes in the Senate, and then passing the bill by a vote in both chambers.
Related news Rising US Treasury Yields Put Pressure on Bitcoin: So Why Is This Happening and How Can We Recover From It?
Terrett said that given there are about two weeks left, that timeline is “logically almost impossible,” both procedurally and politically.
This assessment partly aligns with previous statements by Patrick Witt, executive director of digital assets at the White House. Witt had said that the relevant legislative work “continues to progress on all sides” and that he remained optimistic about the process. However, Witt also noted that an intense coordination process was still underway behind the scenes.
July 4 is considered both a symbolic and political turning point for the Clarity Act. The White House’s prioritization of this date highlights the priority of the bill, and its significance as U.S. Independence Day also conveys the message of a “new regulatory era for digital assets.” Additionally, the slower pace of work as Congress enters its summer schedule, along with recess and the possibility of prolonged political negotiations, are raising concerns that the bill could be delayed until the fall. From a market perspective, the Clarity Act is expected to clarify power sharing between the SEC and CFTC, as well as the classification of crypto assets.
Therefore, the failure to reach a conclusion by July 4, while it does not necessarily mean the bill is completely abandoned, could weaken expectations of rapid passage and lead to prolonged uncertainty regarding crypto regulation in the United States.
*This does not constitute investment advice.
