TD Cowen Says Banks and Crypto Remain at Odds Over Clarity Act

Five banking groups rejected a compromise proposal as insufficient, increasing uncertainty for the Clarity Act as lawmakers face a tight timeline.

Summary

TD Cowen said the banking industry and the crypto sector still have no compromise on the Clarity Act (U.S. crypto market structure bill). The firm noted that five banking groups jointly rejected a compromise proposal, arguing it did not go far enough. With little time left for the bill to pass, the disagreement raises the risk that the legislation could stall.

Terms & Concepts
  • Clarity Act: A proposed U.S. crypto market structure bill that would define how digital assets are regulated.
  • Market structure bill: A law that sets the rules for how an industry is organized, supervised, and traded.
  • Compromise proposal: A negotiated draft intended to bridge disagreements between two sides.