CLARITY Act Approval Odds Drop Massively As Senate Democrats Oppose New Bill Version

The chances of the CLARITY Act passing in 2026 on Polymarket have dropped significantly today. This drop followed Senate Democrats’ criticism of the latest version of the crypto market structure bill.

CLARITY Act Odds Slip Amid Democratic Opposition

According to prediction market platform Polymarket, the CLARITY Act has a 39% probability of approval this year. Amid the growing opposing from lawmakers over several unresolved issues, the odds of passage fell by 26% within a day. Meanwhile, the 24-hour trade volume stood at $2.31 million.

Foe context, before releasing the proposal, Republicans briefed crypto industry officials, such as the Coinbase CEO, Brian Armstrong and other officials. Financial reporter Eleanor Mueller revealed comments from Senator Angela Alsobrooks during the discussions. Alsobrooks said the Republican ethics proposal in the CLARITY Act was “wild and unserious and stone-cold crazy.”

She added, “We must empower state-level attorneys general. … For many of us, that is an absolute. It’s an absolute that we cannot completely rely on the DOJ given what we’ve seen.”

The points of criticism focus on a provision which gives the Department of Justice the authority to enforce ethics requirements. Within a few hours of the revised draft being made available, seven Senate Democrats issued a joint statement.

Senators Catherine Cortez Masto, Angela Alsobrooks, Cory Booker, Ruben Gallego, John Hickenlooper, Mark Warner and Raphael Warnock expressed opposition to the CLARITY Act’s new text.

They said, “The Republican-proposed text of the CLARITY Act as it currently stands falls short. Key provisions including those addressing ethics for elected officials, consumer protection, illicit finance, conflicts of interest and market integrity must be strengthened. We have been working in good faith with our Republican colleagues for the past year and will continue doing so to get this over the finish line.”

A Look At Contents of The Crypto Bill’s New Version

The new draft bill also introduces limitations on how senior government officials can invest in cryptocurrencies. The plan would ban covered elected officials from issuing or sponsoring a crypto asset. It covers the President, Vice President, members of Congress, federal judges and their spouses.

The draft also mandates that these officials sell their crypto assets, move them into a blind trust or both. Moreover, it noted that the ethics provision would expire on January 20, 2029.

The Democrats, who had been calling for tougher ethics rules, had been unhappy with the fact that the financial disclosures revealed that President Donald Trump made up to $1.4 billion from crypto activities last year. Thus, Trump reportedly agreed to an ethics clause earlier this week.

The revised draft also adds new provisions to increase law enforcement powers over crypto-related crimes following concerns that the earlier draft may have allowed illicit finance activities to flourish.