Jefferies warns of crypto market volatility as Clarity Act faces Senate test The bank said the bill faces major hurdles, with passage boosting institutional crypto adoption and delays prolonging regulatory uncertainty. – Jefferies said the Clarity Act faces a difficult path…
rough the Senate, with shrinking legislative time and unresolved political concerns. – Passage would unlock the next phase of institutional digital asset adoption, while delays would prolong regulatory uncertainty. – The bank expects elevated volatility in crypto tokens and blockchain-related equities as the bill’s prospects become clearer. The Clarity Act still faces significant hurdles despite clearing the Senate Banking Committee, with investment bank Jefferies warning that political uncertainty could fuel volatility across crypto markets in the coming weeks
The bill passed committee in a bipartisan 15-9 vote earlier this year, but the bank warned that tougher challenges lie ahead. Polymarket now puts the odds of passage by the end of 2026 at 48%, down from 70% in mid-May as concerns over ethics provisions, illicit finance and limited Senate floor time weigh on its prospects. Lawmakers have roughly 20 legislative days before the August recess to merge competing Senate versions, clear procedural votes, reconcile the measure with the House bill and send it to President Donald Trump. “Failure to pass Clarity before the August recess could push the bill out to next year, or even later, if Democrats flip the Senate in November,” analysts led by Andrew Moss said in the Tuesday report.
The Clarity Act is widely viewed as the crypto industry’s most important market structure bill because it would establish clear rules for when digital assets are regulated as securities by the Securities and Exchange Commission (SEC) or commodities by the Commodity Futures Trading Commission (CFTC), replacing years of regulatory uncertainty. Supporters say that legal clarity would make it easier for banks, asset…