TD Cowen confirmed this week that the CLARITY Act won't reach a full Senate vote before 2026 ends, dooming the bill despite its committee approvals. The legislative freeze stems from Democrats blocking conflict-of-interest provisions and Republicans avoiding votes on Trump amendments, leaving crypto regulation in limbo.
Legislative Roadblocks
Senate Agriculture and Banking Committees already passed the measure. But Democratic objections to presidential conflict-of-interest rules collided with Republican reluctance to advance any bill requiring votes against Trump-related amendments. The standoff killed momentum before the Senate even scheduled floor debate. It's a classic case of politics overriding policy.
IRS Case and Stock Trades
A resolved IRS legal case created a $1.776 billion anti-weaponization fund while permanently blocking audits of Trump's past tax returns. That ruling compounds the delays. Government disclosures also showed about 3,600 stock trades executed on Trump's behalf during Q1 2026. Those transactions directly contributed to the legislative gridlock on Capitol Hill.
CFTC Allegations Surface
The New York Times reported unconfirmed claims that prediction markets and crypto interests influenced CFTC-related efforts. CFTC Chair Michael Selig immediately denied favoritism. The allegations remain unverified, but they emerged amid the regulatory uncertainty surrounding the stalled CLARITY Act.
With no Senate vote scheduled before December, the act effectively dies for 2026. The next real deadline is the 2027 legislative calendar.
