CLARITY Act Risks Delay To November Amid Election Politics Pressure, Says Crypto Expert

The CLARITY Act is facing another delay as U.S. Senate Majority Leader John Thune said it doesn’t have a chance of passage before the August recess. The debacle has turned focus on post mid-term election timeframe around November when the political turmoil may subside. Ron Hammond, Head of Policy and Advocacy at Wintermute, says that while the bill still has enough bipartisan support, he says that election politics is delaying the bill now.

Hammond Warns Election Politics Is Overshadowing The CLARITY Act

The law has become the victim of election-year politics and clashing views on its bases, despite its bipartisan support, Hammond said. Though industry experts like Anthony Scaramucci are seeing only 52 votes in favor of CLARITY Act, the Wintermute exec thinks differently.

“The votes are there, but the election politics are louder. The latter will dissipate after November and that’s a narrow but very possible window,” Hammond remarked, per a Fortune report.

His remarks were made following Senate Majority Leader John Thune saying he hopes the Senate will not be able to pass the CLARITY Act before the end of the recess in August.

The controversy has also been heightened regarding President Trump’s crypto business activities. Democrat lawmakers are trying to establish rules for elected officials that would cap the ability for them to profit from crypto asset pursuits.

Recently, however, the Republicans and Trump suggested that they are willing to consider such measures, even though opponents claim they include a number of loopholes. The latest CLARITY Act draft points to Department of Justice (DOJ) led ethics provisions to restrict Trump and other federal officials involvement in crypto.

However, Democrats believe that this is not regulation at all if the sole power is placed in the hands of DOJ.

Banking Groups Add New Challenges

Hammond further credited banks and other crypto opponents for dragging the CLARITY Act’s progress. He said the delay of the legislation past an important milestone is due to the efforts of opponents to extend discussions.

Meanwhile, Senate Minority Leader Chuck Schumer is reportedly urging Democrats to shift their messaging for the upcoming election to focus on accusations of corruption by Trump. Hammond thinks that such a strategy could make Democratic lawmakers less willing to support a major crypto bill before the elections.

There has also been a drop in market sentiment. Polymarket, a prediction market site, is now giving a 37% probability of the CLARITY Act becoming law this year, down from above 80% previously.

Congress will have little time after the elections to change its tune on the bill, if it ever does. Additional obstacles in the legislative schedule are likely to be faced by the CLARITY Act. The time crunch comes as government funding bills and defense legislation are also likely to be major priorities for the remainder of the legislative calendar.