The CLARITY Act's prospects for becoming law in 2026 are dimming, despite clearing significant legislative hurdles in the Senate. According to TD Cowen, the bill's passage through the Senate Agriculture and Banking Committees has not translated into a full Senate vote, with political challenges stalling progress. TD Cowen's Jaret Seiberg highlights political divisions as a key obstacle, with Democrats hesitant over provisions addressing presidential conflicts of interest and Republicans wary of amendments targeting Trump-related issues. Recent developments, including a $1.776 billion anti-weaponization fund and IRS audit restrictions on Trump, have heightened tensions, complicating consensus on the bill. Additionally, controversies surrounding prediction markets and crypto interests further cloud the legislative path as midterm elections approach.