#midterm-elections

➤ JPMorgan warns that the CLARITY Act faces a narrowing window for success due to political hurdles and disagreements over stablecoin yields. ➤ The primary sticking point is whether stablecoin issuers can offer yield-like products, with banks advocating for stricter regulations similar to traditional financial institutions. ➤ Tighter restrictions on stablecoin yield could redirect capital towards tokenized Treasury products and other regulated alternatives, rather than crypto-native yield offerings.

➤ JPMorgan analysts believe the crypto market structure bill (Clarity Act) faces a narrow window for passage this year due to the upcoming U.S. midterm elections. ➤ A major obstacle is the debate over stablecoin yield, with banks advocating for stricter limits and crypto firms seeking more flexibility. ➤ Restrictions on stablecoin yield could redirect idle crypto funds towards tokenized Treasuries or deposits, potentially impacting crypto-native firms.

➤ A crypto-focused Political Action Committee (PAC), the Blockchain Leadership Fund, backed by Anchorage Digital and Chainlink, has endorsed ten candidates for the 2026 U.S. midterm elections. ➤ The PAC aims to influence regulatory and policy outcomes by supporting candidates across both Republican and Democratic parties who advocate for 'responsible digital asset policy'. ➤ This move signifies increased industry involvement in the electoral process to shape the future of digital assets within the existing financial and regulatory frameworks.

➤ The US Senate's crypto market structure bill faces significant uncertainty due to a congested legislative calendar and upcoming midterm elections, with a July deadline for passage being aspirational. ➤ Passage of the bill would provide crucial regulatory clarity, potentially treating Bitcoin as a commodity under the CFTC and encouraging institutional investment, but faces partisan hurdles and concerns about crime and sanctions evasion. ➤ Failure to pass the bill before the August recess could delay its enactment into a post-election session, with the outcome heavily influenced by election results and the subsequent political landscape for digital assets.

➤ A recent poll indicates significant public distrust towards cryptocurrency (45% deem it too risky) and artificial intelligence (44% believe it's developing too fast). ➤ Despite substantial political spending exceeding $100 million by pro-crypto and pro-AI PACs in the 2026 midterms, public awareness and trust in these industries remain low. ➤ The findings highlight a potential political liability for candidates associated with these sectors, especially concerning the passage of legislation like the Clarity Act, as voter skepticism could influence election outcomes.

➤ Galaxy Digital is urging the U.S. Congress to pass the Clarity Act before the midterm elections to establish a clear regulatory framework for cryptocurrencies. ➤ The firm warns that a shift in Senate control could lead to crypto-skeptic lawmakers chairing key committees, potentially stalling or reversing progress on digital asset policy. ➤ Regulatory clarity is deemed essential for attracting institutional investment and preventing the U.S. from falling behind other nations in the global crypto race.

➤ Industry groups in crypto and AI are spending tens of millions on political committees ahead of the 2026 midterms, despite public skepticism towards both sectors. ➤ A new poll indicates voters are wary of AI developing too fast and investing in crypto, favoring traditional banks and stricter regulations, which could impact candidates backed by these industries. ➤ Lobbying efforts and proposed legislation like the CLARITY Act highlight the intense policy battles shaping the future oversight of digital assets and AI.

➤ The Clarity Act faces a critical juncture, with a 50% chance of passing in 2026, but risks sinking before the midterm elections due to legislative hurdles. ➤ Key factors supporting the bill's initial bipartisan traction included support from former President Trump, Senator Tim Scott's leadership, the passage of the Genius Act, and significant crypto industry lobbying. ➤ Obstacles in the Senate include disputes over stablecoin rewards, the Blockchain Regulatory Certainty Act provision, and concerns about SEC authority, all of which could complicate a floor vote.