The Crypto Clarity Act, major U.S. legislation on crypto market structure, faces potential collapse due to ethics concerns stalling its progress in the Senate. The bill, already passed by the House and cleared by the Senate Banking Committee, awaits a full vote but has hit a roadblock over ethics restrictions proposed for government officials including President Trump, dividing Senate Republicans and Democrats. Democrats are demanding stronger ethics provisions, causing the delay and casting doubt on the bill’s ability to advance before year-end. Market pricing reflects significantly diminished confidence, with only 32% probability the Clarity Act will be signed into law in 2026. Additional unresolved disputes over stablecoin yield and DeFi liability further compound the uncertainty surrounding the legislation.
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