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US Crypto Legislation on the Horizon: Clarity Act Set for Potential Passage

The anticipation surrounding the Clarity Act has reached a pivotal moment as discussions intensify about its potential approval in the US Congress.

Mike Novogratz, CEO of Galaxy Digital, believes the bill could clear Congress by May, paving the way for President Trump’s signature by June.

This legislation aims to establish regulatory order within the US crypto market, offering access to financial products for billions globally.

Novogratz highlighted that this could enable individuals in developing countries to engage directly with the American economy via cryptocurrency.

Moreover, the bill could facilitate the tokenization of major corporations, widening investment opportunities for international investors.

While optimism abounds, not all voices within Galaxy Digital share Novogratz's confidence; research head Alex Thorn suggests a 50% chance of passage by 2026.

He cautioned that missed deadlines for committee markup hearings could dramatically reduce those odds.

Progress has been hampered by disagreements between banks and crypto firms concerning stablecoin yields, with banks expressing concerns over losing deposits.

The CLARITY Act previously passed the House with bipartisan support, but Senate progress has faced significant delays since then.

Despite the challenges, Novogratz remains hopeful that bipartisan collaboration will ultimately drive the bill's success in the near future.