Crypto Markets Can Advance Without CLARITY Act, Grayscale Research Argues

Grayscale Head of Research Zach Pandl said the CLARITY Act faces low odds of passage this year, citing Senate scheduling constraints and election-year political friction. While Pandl noted that agreement remains "technically still possible" before year's end, he emphasized that "the realities of the Senate calendar" present a significant barrier to action.

Despite the delay, Pandl argued that crypto markets can continue advancing without the legislation. Bitcoin's demand as a store of value and stablecoin payment adoption are expected to remain unaffected by the bill's failure to pass this year. The industry "has moved forward for almost 17 years" without such legislation, Pandl noted, and major blockchains will continue operating on a daily basis regardless.

The CLARITY Act aimed to establish a comprehensive national rulebook for digital assets, including frameworks for blockchain-based capital formation, tokenized securities oversight, and digital asset intermediary regulation. Pandl described it as "a sensible, tradfi-like rulebook for digital asset markets in the US" and called its stalled progress "a missed opportunity."

Regulators are expected to fill legislative gaps through rulemaking rather than comprehensive legislation. The current administration has already supported digital assets through regulatory actions including new custody rules for institutions and improved banking access for crypto firms. However, absent comprehensive US crypto legislation, investment and developer activity could shift toward overseas jurisdictions with clearer regulatory frameworks.