TD Cowen Warns Next Week's Midterms Could Stall CLARITY Act and Test Crypto's Political Clout

Analyst Jaret Seiberg warns that probable midterm election results could make it difficult for Congress to pass the CLARITY Act over the next two years. The bill aims to set federal rules for digital assets, and the crypto industry has spent $176 million across more than 100 races to shape the outcome. Depending on the election scenario - ranging from a Democratic sweep to a Republican majority - the future of the CLARITY Act and regulatory focus on tokenization, stablecoins, and market structure will vary significantly.