CLARITY Act Outlook Dips as White House Stalls on Ethics Clause

The path to turning the CLARITY Act into law is looking steeper this week. Betting markets on Polymarket have adjusted their predictions, showing the chance of the bill passing in 2026 falling to 31 percent. The primary issue stems from the White House, which is currently withholding its support due to specific ethics language included in the draft.

This dispute creates a significant hurdle for the crypto industry, as many market watchers viewed this legislation as a way to formalize regulatory standards. Without the approval of the executive branch on these internal ethics provisions, the bill faces an uphill battle to secure a necessary vote in the Senate.

Investors are now keeping a close watch on whether lawmakers can revise the text to satisfy the administration. If the current stalemate continues, it could push back expectations for meaningful legislative progress until later in the political cycle.