CLARITY Act passage odds sink to 14% – SEC, CFTC push ahead with crypto rules

Lawmakers are going back to Washington this week after the August recess. But the CLARITY Act’s passage outlook remains uncertain ahead of the Senate vote. 

Last month, Senate Majority Leader John Thune scheduled a critical procedural vote on the crypto bill for the 15th of September. If it clears this hurdle, the bill could proceed to a full floor vote.

Unfortunately, there are sticking points, including ethics and stablecoin yield, that have remained unresolved and are deal-breakers for some Democrats and a handful of Republicans. 

With November midterms closing in, the market has become doubtful of the bill’s progress this month. As of this writing, prediction site Polymarket was pricing only a 14% chance of passage. 

SEC and CFTC race for plan B as CLARITY Act stalls

The regulators, the SEC and CFTC, have activated their countermeasures in case the bill falters.

In August, the SEC proposed $75M crypto funding via ICO (initial coin offering). Notably, the agency also submitted a draft to the White House to update custody rules and expand them to crypto services and assets.  

On the 1st of September, the SEC made another historical guideline and shift: an update on transfer agent rules.  The proposal includes blockchain and paves the way for a formal path for tokenized stocks and broader assets. The SEC added,