CLARITY Act Prospects Dim as TD Cowen Cuts Passage Odds to One-Third

Overview

• Investment bank TD Cowen now puts the CLARITY Act’s chance of becoming law this year at about one in three, reflecting a drop in support in Congress.
• The latest draft would stop platforms from paying interest on idle stablecoin balances but allow small rewards tied to user activity, a tradeoff analysts say pleases neither crypto firms nor banks.
• Coinbase has opposed the yield ban, and its research chief said the industry is coordinating a counterproposal to lawmakers.
• Cardano founder Charles Hoskinson warned the bill could take up to 15 years of rulemaking to function and said its language could be used by a future administration to crack down on crypto.
• Action timing is uncertain as the Senate breaks for Easter, with a late April committee markup still possible and late July seen by TD Cowen as the likeliest window; Senator Mark Warner also cut his own odds to 50–60%.