Crypto
How'll Crypto Market Look Without the CLARITY Act
Grayscale Head of Research says crypto can keep growing without the CLARITY Act, but delays could slow investment, tokenization and U.S. market growth.
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BLOCKINSIDERLoadingGrayscale Head of Research says crypto can keep growing without the CLARITY Act, but delays could slow investment, tokenization and U.S. market growth.
The delayed CLARITY Act has left the U.S. crypto industry without the market rules. Still, Grayscale Investment Head of Research Zach Pandl says the setback will not stop crypto activity, Bitcoin demand, or stablecoin payments.
Although the lack of a clear law could slow investment and push some businesses overseas.
On August 7, 2026, the Senate left Washington for its August recess without voting on the CLARITY Act. The delay has lowered expectations that the bill will become law this year, especially as lawmakers face a tight schedule before the 2026 midterm elections.
But the delay does not mean U.S. crypto activity will suddenly stop. Grayscale said major blockchains can continue operating, Bitcoin can remain a store of value and stablecoin payments can keep growing without the bill.
Zach Pandl said that, “The digital asset industry has operated for roughly 17 years without CLARITY, and it will keep doing so.”
That does not mean the bill is unimportant. The bigger problem is what the U.S. may lose by not having a clear market structure law.
The biggest long-term concern may be where new crypto businesses choose to build. Grayscale said the lack of full market structure rules could push some entrepreneurial activity overseas, especially if other countries offer clearer rules for token launches, developers and digital asset companies.
The trend had started to reverse under the current administration, but Grayscale warned that it could return if Congress fails to provide a wider legal framework.
One area that could feel the impact is tokenization. The bill included measures aimed at supporting tokenized securities and new forms of blockchain-based capital raising.
Without those rules, companies may have to continue working through a mix of existing laws and agency guidance. That can make new projects slower and more difficult to launch.
The lack of a new law does not leave regulators powerless. Under the current administration, federal agencies have already taken steps on areas such as crypto custody, banking access, staking and crypto exchange-traded products.
Grayscale expects that work to continue.
The SEC could use rulemaking and new guidance to address some of the issues that the CLARITY Act was expected to cover, particularly around tokenized securities. That could give companies some help while Congress remains stuck.
However, agency rules are not the same as a law passed by Congress. A broad market structure law would provide a clearer and more lasting framework for the industry.
The next major test is already set for September 15, 2026, when the Senate is expected to hold a cloture vote on the motion to proceed with the bill.
Senate Majority Leader John Thune filed the cloture motion before lawmakers left for the August recess. The vote will be important because the Senate needs 60 votes to overcome a filibuster and move forward. Republicans hold 53 seats, meaning the bill will need support from Democrats as well.
The bill had already cleared the Senate Banking Committee with a 15-9 vote in May, but disagreements remain.
Stablecoin yield rules and ethics provisions are among the issues holding up negotiations.
Prediction markets including Polymarket have put the chances of the bill becoming law this year at only around 20% to 26%, according to the reference data.
If CLARITY fails, crypto will not disappear from the U.S. Bitcoin will continue trading, stablecoins will continue moving money, and blockchain networks will keep operating.
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