Next Week’s Midterms Could Stall the CLARITY Act and Test Crypto’s Political Clout: TD Cowen
· regulatory · Sentiment: neutral
The upcoming U.S. midterm elections are likely to delay or stall progress on the CLARITY Act, a key piece of legislation aimed at establishing a clearer regulatory framework for digital assets. According to TD Cowen, the outcome will serve as a major test of crypto industry’s growing political influence and its ability to secure favorable policy outcomes. A fragmented or divided Congress post-midterms could push meaningful crypto legislation into 2025 or beyond, prolonging regulatory uncertainty. The key implication is that Bitcoin and the broader crypto market may face continued policy headwinds and delayed institutional clarity until a new political equilibrium emerges.