Shark Tank host Kevin O’Leary has suggested that the stalled Clarity Act, a proposed US regulatory framework for cryptocurrencies, could resurface in the Senate as early as the first half of 2024. Speaking at the Avalanche Summit, O’Leary argued that the bill’s failure to secure the required 60 Senate votes in December was a temporary setback rather than a final defeat.
The Clarity Act, which aimed to clarify the roles of the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) in overseeing digital assets, received only 49 votes in the Senate. O’Leary linked its potential revival to progress on a separate crypto tax bill, the Digital Asset Tax Certainty Act, which has advanced through the House Ways and Means Committee.
He warned that taxation would force lawmakers to address broader regulatory questions, stating: “Once you tax, you’ve got to have policy.” O’Leary also highlighted the need for clarity on staking rewards, asserting that “policy’s coming in CLARITY, and it has to.”
The timing of any legislative revival, he said, would likely depend on the outcome of the mid-term elections. “When will it come? Probably in the first or second quarter after the midterms,” he added.
Analysts note that the Clarity Act’s return would mark a pivotal moment for US crypto regulation, though its success remains contingent on bipartisan support and the evolving political landscape.
Written by Steven Cook
Regulation Desk
