Analyst: Legislative prospects for the Clarity Act still face obstacles

Odaily Planet Daily News: The U.S. Senate Banking Committee has advanced the crypto market structure bill, the Clarity Act, with a 15-9 vote. The bill aims to establish, for the first time at the federal level, a comprehensive regulatory framework for the crypto industry, and has received support from Democratic Senators Ruben Gallego and Angela Alsobrooks.

Although the industry generally views the committee's passage as positive progress, analysts believe there are still significant hurdles for the bill to become law. TD Cowen has raised the probability of the bill passing from approximately one-third to 40%, stating that some Democratic lawmakers are willing to find a path for support, but substantive differences have not been fully resolved.

Previously, the bill was long hindered by issues such as stablecoin yield arrangements, conflicts of interest, and ethics clauses. Additionally, to overcome a filibuster in the Senate, the bill will need more Democratic support than it currently has. Benchmark analysts also noted that the current number of supporting votes is not enough to ensure its final passage. (The Block)