CLARITY Act Seen As Stabilizing Force For Investors

In Washington, the regulatory future of cryptos may be decided in the coming months. Amid market volatility, the CLARITY Act stands as a pivotal text for the American crypto industry. Treasury Secretary Scott Bessent advocates for its rapid adoption, believing that legislative clarification could soothe investor sentiment. Behind this tight schedule lies a major political stake: securing the crypto framework before the 2026 electoral balances reshuffle the cards.

The CLARITY Act presented as a factor of immediate stabilization

Amid a phase of market tensions, Treasury Secretary Scott Bessent placed the CLARITY Act, which is currently blocked, at the center of the regulatory debate. His intervention, relayed by CNBC, comes as the crypto market goes through a period of marked volatility, characterized by significant sell-offs. The US official believes that a clear legislative signal could help to soothe this situation.

His message is based on a precise schedule and the need to act quickly to avoid institutional deadlock. According to him, the current political window must be seized to secure the adoption of the text before the electoral context further complicates the parliamentary process.

He notably stated:

• “At a time when we are going through one of those historically volatile waves of selling, I think bringing more clarity around the CLARITY Act would offer real relief to the market and allow us to move forward”;

• The bill must be adopted “as quickly as possible” in order to be sent to President Donald Trump for signature in the spring;

• In case of the House being taken over by the Democrats, “the prospects of reaching an agreement will collapse purely and simply”.

These statements clearly position the CLARITY Act as a lever to stabilize investor sentiment, in an environment where regulatory uncertainty adds to market fluctuations.

The electoral equation and the risk of a political shift

Beyond procedural urgency, the debate is embedded in a sensitive electoral context. The Republican Party currently holds a narrow majority in the House of Representatives, with 218 seats against 214 for the Democrats, according to official House data. This four-seat lead places every vote under high tension ahead of the 2026 midterm elections.

Several observers point out the risk of a reversal. Joe Doll, former general legal counsel of the NFT marketplace Magic Eden, reminds that the balance of power frequently shifts during midterms.

Economist Ray Dalio warned in January that President Trump benefits from a “two-year unfettered mandate” likely to be “significantly weakened during the 2026 midterm elections and reversed in the 2028 election” if directions are not enshrined in law.

Prediction markets reflect this uncertainty. On Polymarket, 47% of traders anticipate a divided Congress in 2026, while the probability of full Democratic control of both chambers rises to 37%.

In Washington, the political calendar now weighs as much as markets. While its adoption could reassure investors, the CLARITY Act worries industry leaders, aware that an electoral shift in 2026 could redefine the regulatory balance. More than a technical text, it embodies a strategic battle for the future of American cryptos.