Bernstein: Key Window for 'Clarity Act' Passage Closing, Risk of Delay or Failure Increases Without Compromise

In a recent analysis report, Wall Street firm Bernstein pointed out that the window for the United States to pass the cryptocurrency market structure bill is rapidly narrowing as legislators face deepening disagreements between the banking industry and the crypto industry on stablecoin yield issues. Analyst Gautam Chhugani stated in a report to clients on Monday that while the core content of the 'Clarity Act' (including the distinction between digital commodities and securities and the regulatory approach to decentralized finance) is controversial, these issues are unlikely to hinder its progress. The core obstacle lies in banking representatives attempting to restrict crypto platforms from offering stablecoin yield. The industry views these incentives as a threat to traditional deposits, as the stablecoin market could grow from the current over $275 billion to trillions of dollars and become systemically important. The crypto industry argues that reopening this issue would undermine the hard-won legislative compromise of the 'GENIUS Act' signed into effect by former President Trump last year. Analysts warn that failure to reach a compromise quickly will increase the risk of delaying or failing the bill. Bernstein added that the political timing is crucial, with the bill needing to make progress by the second quarter of 2026 at the latest to avoid being disrupted by midterm election dynamics. The company noted that the Trump administration's pro-crypto stance has brought advantages to the industry, but cautioned that if the yield dispute continues, momentum could still stall. Chhugani emphasized that the current period is a key window.

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