The longer CLARITY stalls, the bigger crypto giants could get

The time is running out for the CLARITY Act before the Senate takes its recess on August 7, and the impact of this delay is being felt differently in the crypto space. Major firms are managing to raise funds, but smaller companies, DeFi projects, and community banks are still expecting the appropriate regulations, which, it seems, will come up only in 2027.

That disparity became clear this week when Cathie Wood’s ARK Invest increased its stake in Coinbase and Circle Internet, according to Investor’s Business Daily, whereas Senate Majority Leader John Thune said nothing except that he was looking for an initial vote before the week was over. Circle managed to gain federal approval for its national trust bank back in July, according to InvestorIdeas. Various firms that can adapt to the regulatory landscape are getting advantages over others while the new framework is still not finalized.

A four-week runway that never opened

As per Yahoo Finance’s Alex Ioannou, a combined Senate draft was supposed to happen approximately on July 13 and have a floor action on July 20, after which the lawmakers would have about a month until the August recess. However, since the Senate rules require 60 votes to break a filibuster, Republicans will still need Democrats’ votes.

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