According to the latest reports, Banks and crypto firms have agreed on a deal for the Bitcoin market structure bill, with an official announcement expected this week. The CLARITY Act had been stuck since January over whether crypto platforms could offer yield on stablecoins, but that issue now appears resolved.
However, John E. Deaton has warned that the CLARITY Act could collapse if not passed soon.
“It’s going to die… Innovation will die potentially here,” Deaton said in a recent interview, stressing that time is running out as political focus begins shifting toward the 2026 midterm elections.
According to Deaton, the biggest threat isn’t opposition, it’s timing. Once summer arrives, election campaigns are expected to dominate Washington, leaving little room for complex legislation like crypto regulation.
“If we get into the summer months, it’s just probably not going to happen,” he said, pointing out that lawmakers will be consumed by campaigning rather than policymaking.
This creates a narrow window over the next few weeks for progress before Congress slows down ahead of the August recess.
Deaton also warned that election outcomes could reshape the entire regulatory landscape. If Democrats gain control, Elizabeth Warren could lead the Senate Banking Committee.
He argues that under her leadership, the approach would lean toward stricter enforcement rather than innovation-friendly rules, making the CLARITY Act unlikely to pass.
With limited time and rising political pressure, the coming weeks may decide whether the U.S. gets clear crypto regulation or sees the effort fade entirely.
Meanwhile, chances of the CLARITY Act passing are slipping, with Polymarket now showing odds at 60% in April, down from 82% in February, showing that confidence around the bill is starting to cool.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Ethereum price action is beginning to flash fresh warning signs as a combination of whale…
The Terra Classic's price had gained immense attention after an explosive 80% rally over the…
For crypto projects looking to scale user acquisition, choosing the right ad network is one…
Monetary Authority of Singapore has revoked the payment license of crypto liquidity provider Bsquared Technology,…
Spot ETFs tied to Hyperliquid are showing strong early momentum, according to crypto analyst Aletheia.…
Senator Elizabeth Warren sent a letter to the Office of the Comptroller of the Currency…
