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CLARITY Act Stall Tests Stablecoin Market

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The CLARITY Act's delay in Senate Banking deliberations has stalled the codification of pro-crypto policies, leaving the digital asset market in regulatory limbo. Galaxy Research now estimates only a 30% chance of enactment this year, casting uncertainty over the sector. Meanwhile, Wall Street has issued a $6.6 trillion warning on stablecoins, arguing that unchecked growth could destabilize financial markets. This caution contrasts sharply with the White House's more permissive stance, setting up a potential policy clash. The delay effectively creates an unexpected experiment: the market must self-regulate while lawmakers debate. For stablecoin issuers, this means heightened scrutiny and the need for robust risk management. The outcome could redefine the regulatory landscape for digital assets, with implications for liquidity, investor protection, and systemic risk.

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