Democratic Gains Could Keep CLARITY Act Stalled Until 2028

Democratic gains in the U.S. midterm elections could leave crypto market-structure legislation stalled for years, raising the prospect that Congress will not advance the CLARITY Act before 2028.

Sharplink CEO Joseph Chalom expects the bill to remain stuck until 2028. TD Cowen analyst Jaret Seiberg sees little chance of progress over the next two years and believes the political climate could prevent an industry-backed version from moving forward.

A stronger Democratic position in Congress could also shift attention toward scrutiny of President Donald Trump's crypto business ties, including World Liberty Financial, and away from industry-backed legislation.

Circle and other crypto industry participants have pointed to support for the sector in both parties. They say stablecoins and tokenized stocks could still advance through existing laws and agency rulemaking, even if the CLARITY Act is delayed. The bill is aimed at setting rules for the U.S. crypto market.