Clarity Bill Renegotiation Depends on Midterm Election Results

The U.S. midterm elections will be held on November 3, and the Democratic Party is expected to regain the majority in the House of Representatives. Experts believe that the results of the midterm elections will lead to changes in U.S. digital asset policy. Following the midterms, the composition of Congress and agreements on ethical provisions will be key to renegotiating the Clarity Act, a comprehensive digital asset bill. The ethical provisions of the Clarity Act restrict the participation of public officials and their families in digital asset businesses. The failure of the Senate to pass a cloture vote on the Clarity Act in September has stalled the bill's progress. The Democratic Party proposed expanding the scope of the ethical provisions and requiring public officials to sell rather than place their assets in blind trusts, while the Republican Party claimed to have made sufficient concessions. The outlook for the bill's passage during the lame-duck session after the midterm elections is mixed. If the Republican Party retains control of the Senate, there may be potential for negotiation, but if the Democratic Party controls both chambers, the bill's priority may be diminished.