Midterm Gains Raise Doubts About CLARITY Act Progress Through 2028

Strong Democratic gains in the Nov. 3 midterms have added uncertainty around a U.S. crypto market-structure bill, with Sharplink CEO Joseph Chalom expecting legislative progress to remain stalled through 2028.

TD Cowen analyst Jaret Seiberg sees little chance of progress over the next two years. He also expects the political climate to make it difficult to advance a version backed by the crypto industry. Before the election, the bill’s path was already a focus of questions about the midterms’ potential effect.

The Digital Asset Market Clarity Act of 2025, known as the CLARITY Act, would establish federal oversight rules for parts of the digital-asset market. The House passed it 294-134 on July 17, 2025.

On Sept. 15, 2026, the Senate failed to invoke cloture on a motion to proceed, voting 49-50. The procedural vote did not decide whether to pass the bill.

Chalom’s forecast concerns legislative progress through 2028; it does not mean the current text will remain active until then. The bill’s present text could lapse when the 119th Congress ends on Jan. 3, 2027.

Circle and other crypto industry participants have emphasized that the industry has supporters in both parties. Stablecoins and tokenized stocks may still advance under existing laws and through agency rulemaking even if the CLARITY Act stalls.