US CLARITY Act Faces Potential Delays Until 2027: Political Obstacles and Conflict of Interest Provisions

2026-01-06 09:20:11

Source: CryptoNewsNet Original Title: Things Aren’t Going Well for the Most Important Cryptocurrency Law in the US! “Trump is Being Cited as the Biggest Obstacle!” Original Link: https://cryptonews.net/news/legal/32231931/ 2025 marked a year of significant progress for US cryptocurrency regulation, highlighted by the passage of the GENIUS Act for stablecoin regulation and advances on the CLARITY Act.

The CLARITY Act, which aims to establish clear rules for cryptocurrency markets, is now considered the most important regulatory milestone since GENIUS and was expected to be passed this year. However, a recent report by investment bank TD Cowen suggests approval could be delayed until 2027.

Jaret Seiberg, managing director of TD Cowen, stated that while the CLARITY Act could make progress this year, actual adoption is likely to occur after 2027 due to political uncertainty. According to reports, if political obstacles persist, final rules could come into effect as late as 2029.

Political Obstacles and Conflict of Interest Provisions

Seiberg argued that the Democratic Party may delay approval, believing it could gain House control in midterm elections. The biggest obstacle identified is the conflict of interest provision, which would restrict access to cryptocurrency businesses for high-ranking US officials and their families.

The report specifically analyzed how involvement by President Donald Trump and his family in cryptocurrency projects has become a political issue, creating friction over the bill’s passage.

Potential Compromise Path

TD Cowen suggested a possible compromise: postponing the conflict of interest provision for approximately three years to allow the CLARITY Act to pass. This approach could reduce political burden while maintaining legislative momentum.

A hearing session for the CLARITY bill is scheduled for January 15th. The bill will establish a clear framework for regulating digital assets in the US, splitting oversight between the SEC and CFTC, encompassing institutional oversight and asset classification. It also includes provisions that would exempt certain cryptocurrencies, under specific conditions, from the registration requirements of the Securities Act of 1933.

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