Experts Warn CLARITY Act’s Path to Implementation Could Be Long

Jimmy Aki
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While the crypto industry anticipates new regulatory clarity by 2026, experts advise that true implementation may be further off. Jay Slaughter, Paradigm’s Vice President of Regulatory Affairs, is urging a measured outlook on the proposed CLARITY Act.

Why the CLARITY Act’s Full Impact Will Take Time

On January 14, Slaughter addressed the much-anticipated Digital Asset Market Clarity Act of 2025 in an X post.

The Paradigm boss explained that the CLARITY Act will need to go through multiple rounds of rulemaking, essentially, examinations of the bill’s provisions by individual lawmakers, agencies, and regulators.

Slaughter estimates the CLARITY Act would need at least 45 separate rulemakings.

Using the Dodd-Frank Act as a reference, he projects full implementation could take between three and eight years. This lengthy process would only begin after the bill passes Congress—an outcome that is not yet certain.

The CLARITY Act is a market structure bill being pushed by the Senate Banking Committee, which looks to clarify the roles of the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC) in regulating digital assets.

Along with the GENIUS Act, this bill is seen as a landmark piece of legislation for the industry. And while many within the industry remain confident that the bill will move forward in 2026 and could even be passed, Slaughter cast doubt on this accelerated timeline.

The rulemaking process for regulatory bills usually involves everything from proposal publishing to seeking public consent and more. Given the complexity of a bill like the CLARITY Act, it is easy to see why and how the process could be extended.

Industry Support for CLARITY Looks Shaky

Passing the legislation itself presents major hurdles.

The CLARITY Act will require considerable bipartisan support in the Senate Banking Committee if it is to pass. According to Galaxy Digital’s Head of Research, Alex Thorn, securing the necessary 7 to 10 Democratic votes may be difficult given the current political climate.

Thorn was also quick to point out that failure to pass the bill this month could effectively end any chances of it being passed anytime this year. With the Midterm elections coming in November and Democrats being heavily favored to take back the House, the chances of a second vote this year are slim.

Besides the potential roadblocks in Congress, there are also signs that support for the CLARITY Act within the crypto industry could be on shaky ground.

Earlier this week, a report confirmed that Coinbase was considering not supporting the bill over a provision that could restrict stablecoin issuers from offering rewards on exchanges and other platforms.

Stand With Crypto, an industry advocacy group, has raised concerns over this provision as well, putting even more pressure on lawmakers.

Charles Hoskinson, the founder of Cardano, has also expressed pessimism about the CLARITY Act’s chances of passing.

In an interview, the developer cast doubt on the proposed timeline, while also sharing concerns that the current window could be lost if the balance of power in Congress shifts in November.

Nevertheless, all eyes will be on Congress this week as the CLARITY Act gets set for a final markup.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.