CLARITY Act Odds Decline as SEC and CFTC Build Interim Fixes

Congress and the regulators are no longer moving on the same timeline. The CLARITY Act, the U.S. crypto market structure bill meant to settle long-running questions over digital asset issuance and trading, now looks less likely to pass in 2026. Galaxy Research’s latest read, the original report, points to fading legislative momentum and a shift toward faster agency action.

The banking sector’s resistance to sweeping market structure changes has already been visible in the Senate, where major crypto legislation faced a last-minute lobbying fight. That friction is now part of the broader backdrop for the CLARITY Act. As the calendar tightens, the practical question for exchanges, issuers, and compliance teams is not whether Congress will act, but which agency will fill the gap first.

Agency action is accelerating

The SEC and CFTC have responded to the uncertainty by pushing administrative measures: rulemaking, interpretive guidance, and regulatory exemptions. Galaxy says the goal is to clarify how digital assets should be issued, traded, and supervised while the legislative path remains blocked. A staff interpretation or an exemption can be more useful in the near term than a bill that may never get a floor vote.