Investment bank TD Cowen expects the proposed CLARITY Act to face a prolonged path in Congress, cautioning that the bill may not pass until 2027 and might not take effect until 2029. The projection highlights intensifying concerns that lawmakers have limited time this session to advance comprehensive digital asset legislation.
TD Cowen Sees Multi-Year Timeline
According to reports citing TD Cowen’s policy analysis, the CLARITY Act is unlikely to clear Congress in the near term. Even if momentum builds in a future session, the bank estimates an implementation date as late as 2029, reflecting the length of the legislative and administrative process.
Tight Calendar and Committee Hurdles
The bill’s timetable is constrained by the congressional calendar and procedural steps. Alex Thorn of Galaxy Digital noted that the window for progress is narrow, adding that if the CLARITY Act does not advance out of committee soon, its prospects this session diminish significantly. Major legislation typically requires committee approval, floor time in both chambers, and reconciliation—steps that are harder to complete in an election cycle.
Why It Matters for Crypto Policy
The CLARITY Act is intended to provide clearer federal rules for the digital asset market, an area where regulatory boundaries and oversight remain contested. A delay into 2027 or later would extend the current period of uncertainty for exchanges, token issuers, and investors, leaving market participants to navigate evolving enforcement and guidance under existing securities and commodities laws.
What to Watch
Key indicators for the bill’s trajectory include any committee markups, bipartisan co-sponsorship, and signals from congressional leadership on floor time. Without near-term movement, attention is likely to shift to a future Congress, aligning with TD Cowen’s outlook for a longer legislative runway.