As Congress runs short of time to pass the CLARITY Act this year, some legal experts say many crypto companies have already adapted to operating without clear US rules, raising questions about how much impact the measure would even have should it manage to become law.
As CLARITY Act Faces Delays, Some Lawyers Say Crypto Has Already Moved On
30 June 2026 - 00:20 CEST
By Jona Jaupi
Galaxy Research recently lowered its odds that the CLARITY Act will become law this year to 50%, down from 60% earlier this month. In a lengthy X post, the firm said the change reflects the Senate's crowded schedule, not less support for the bill.
The CLARITY Act would create the first broad set of US rules for digital assets. It would clarify whether the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC) oversees different types of cryptocurrencies. It would also set rules for crypto exchanges, token issuers and some decentralized finance (DeFi) projects.
Has the industry already adapted?
Dave Rodman, founder and managing partner of The Rodman Law Group, a law firm focused on Web3 and digital assets, said many crypto companies have spent years adapting to regulatory uncertainty by building their businesses outside the United States.
"It's not as significant as people outside the day-to-day operations of crypto companies tend to think it is," Rodman told Sandmark.
"Most have already chosen to operate in a non-US-centric manner, as many companies have been doing since around 2018," he said. Rodman added many companies are paying more attention to the SEC's current enforcement priorities than to the legislation itself.
"There are definitely some 'nice-to-have' provisions in it, but the US may have missed the window for it to matter in the way it does in traditional financial markets," he said.
Still, Rodman explained, the bill includes some important protections. One provision would make clear that software developers who build noncustodial crypto applications, but never control customer funds, are not considered money transmitters under federal law.
He also said clearer rules could allow some DeFi platforms that currently block US users to remove those restrictions. However, Rodman said the bill would likely have less impact on token issuers because it mostly leaves the SEC in charge of token sales and does not change current tax rules.
Running out of time
Meanwhile, Galaxy said the biggest challenge facing the bill is no longer the legislation itself, but finding enough time to pass it.
"The downgrade is primarily related to the calendar, not the substance of the bill," Galaxy head of research Alex Thorn wrote in a recent research note.
The bill passed the Senate Banking Committee in May, but lawmakers still need to combine different versions of the legislation before it can move to the Senate floor. If it passes the Senate, it would still need approval from the House before going to President Donald Trump.
While Trump has previously expressed support for the CLARITY Act, Congress is focused on several other priorities, including the annual defense bill, legislation to renew Section 702 of the Foreign Intelligence Surveillance Act (FISA) and the SAVE Act – a measure that would require proof of US citizenship to register to vote in federal elections.
"Floor time is the scarcest resource in the Senate right now, and crypto market structure is not first in line for it," Thorn wrote.
Galaxy said Senate leaders would likely need to schedule a vote in early July for the bill to have a realistic chance of passing before Congress leaves for its August recess.
If that doesn't happen, the bill could slip into September, when election-year politics may make it harder to pass major legislation.
Why supporters still want the bill
Supporters say the CLARITY Act would give the crypto industry the clear rules it has been asking for years. They also say it could encourage more companies to build blockchain-based products in the US instead of overseas.
In a blog post published earlier today, JPMorgan said digital assets are becoming a bigger part of the financial system and that the US has a chance to lead the industry with the right rules.
The bank said technologies such as tokenization and programmable money could make payments faster and improve the financial system.
However, it also said clear rules should come with strong safeguards to protect consumers and help prevent illegal activity.
