TD Cowen Identifies Five Major Obstacles to Clarity Act Beyond Stablecoin Yield Issues

Gate News message, April 23 — Investment bank TD Cowen has identified five major obstacles facing the passage of the Clarity Act, beyond the stablecoin yield issue, according to The Block.

The first obstacle is that the U.S. Commodity Futures Trading Commission (CFTC) currently has only one commissioner, with the nomination and confirmation process for additional commissioners potentially taking months, while the bill's deadline is in late July. The second is the regulatory question around prediction markets; including them in the bill could cause Democrats to withdraw support. The third is the continued attention surrounding the World Liberty Financial crypto project, which has ties to the Trump family, potentially making it difficult for Democrats to back the legislation. The fourth is that Iran has reportedly been discussing requiring ships to pay tolls for passage through the Strait of Hormuz in cryptocurrency, which could increase pressure on anti-money laundering provisions. The fifth is that the Credit Card Competition Act could potentially be incorporated into the crypto bill.

Senator Tillis indicated that the Senate Banking Committee could hold a vote on the bill as early as May, with the stablecoin yield compromise text potentially being released before the review. Galaxy Digital estimates the probability of the bill passing this year at approximately 50%.