The passage of the Digital Asset Market Clarity Act of 2025, also known as the CLARITY market structure bill, hinges on bipartisan support in the United States Senate Banking Committee, according to Alex Thorn, head of research at crypto investment firm Galaxy.
Typically, the Senate needs at least 60 votes to advance legislation, and Republicans need seven to 10 Democrats to vote yes on the CLARITY Act, Thorn said on Friday.
If Republicans can secure four votes from Democrats on the Senate Banking Committee, it is “likely” that all 17 Democratic senators who voted for the GENIUS Act, a stablecoin regulatory framework, will vote with Republicans to advance the market structure bill. Thorn added:
“Advocates for the market structure bill want to see a similar level of bipartisanship next week. Absent a strong bipartisan showing in the Senate Banking Committee vote, the bill’s odds of passing in 2026 drop dramatically.”
The US Congress passing a crypto market structure framework would foster crypto adoption, especially among institutional investors, who may be hesitant to adopt digital asset technology due to unclear regulations and the possibility of a regulatory rollback, Thorn said.
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What happens if market structure bill doesn’t pass?
If the CLARITY Act fails to pass in the Senate, the impact on the crypto industry would be “relatively minimal,” Thorn said, adding that industry players have already secured several key policy objectives through the pro-crypto regulatory pivot in the US.
However, short-term investor sentiment will likely be impacted if the bill fails to advance, Thorn said, with the 2026 US midterm elections making it “highly uncertain” that the bill will see a second vote in 2026 if it fails to advance on Jan. 15.
Investment Bank TD Cowen recently warned that crypto market structure legislation may not pass until 2027, and might take effect in 2029, if Democratic lawmakers manage to stall the vote beyond the midterm elections and regain power in at least one chamber of Congress.
Trump-era regulations that benefited the crypto industry, artificial intelligence and the broader tech industry could be rolled back if Republicans lose control of either chamber in the 2026 midterms, billionaire hedge fund manager Ray Dalio said.
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