2025 was a year of significant progress for the US. This was evident in the passage of the GENIUS Act, which regulates stablecoins, and in the progress made on another important piece of legislation, the CLARITY Act.
At this point, the CLARITY Act, which aims to establish clear rules for cryptocurrency markets, is considered the most important regulatory milestone since GENIUS and is expected to be passed this year.
However, a recent report by investment bank TD Cowen stated that the approval of US cryptocurrency legislation could be delayed until 2027.
Jaret Seiberg, managing director of TD Cowen, said that the CLARITY Act could make some progress but that its actual adoption is likely to be after 2027.
According to The Block, Jaret Seiberg stated that the bill could pass this year, but due to political uncertainty, a delay until 2027 is more likely. Seiberg also predicted that if political obstacles are not resolved this year, the final rules could come into effect in 2029.
Seiberg argued that the Democratic Party would not want to rush through the CLARITY Act and would delay its approval because it believed it could gain control of the House of Representatives in the November midterm elections.
Seiberg stated in the report that the biggest obstacle to the CLARITY Act is the conflict of interest provision, adding that the Democratic Party insists on restricting access to cryptocurrency businesses for high-ranking US officials and their families.
Specifically, the report analyzed how President Donald Trump and his family’s involvement in cryptocurrency projects and companies has emerged as a political issue.
At this point, TD Cowen also suggested that a compromise might be reached to delay the implementation of the conflict of interest provision for approximately three years in order to allow the CLARTIY Act to pass. Postponing this provision until after the current administration’s term could reduce the political burden while gaining legislative momentum.
A hearing session for the CLARITY bill is scheduled for January 15th. The bill will establish a clear framework for regulating digital assets in the U.S. This framework will split between the SEC and CFTC, encompassing institutional oversight and asset classification. It also includes provisions that would exempt certain cryptocurrencies, under specific conditions, from the registration requirements of the Securities Act of 1933.
*This is not investment advice.