Catenaa, Friday, May 15, 2026- SkyBridge Capital founder Anthony Scaramucci warned that the US Clarity Act may fail to clear the Senate until 2029, arguing that political division, banking industry pressure and regulatory uncertainty are slowing progress on crypto legislation.
Speaking during recent policy discussions, Scaramucci said institutional investors remain unable to fully enter major digital asset markets because Congress has not established clear legal classifications for cryptocurrencies beyond bitcoin.
The warning comes as lawmakers prepare for another high stakes Senate Banking Committee hearing on the crypto market structure bill later this week.
The Clarity Act seeks to define whether digital assets fall under Securities and Exchange Commission or Commodity Futures Trading Commission oversight. Crypto firms and institutional investors have argued for years that the absence of legal definitions creates uncertainty across trading, custody and investment operations.
According to Scaramucci, the lack of statutory clarity prevents compliance departments at pension funds, sovereign wealth funds and institutional asset managers from approving allocations to many blockchain based assets.
Bitcoin has avoided much of that uncertainty because spot bitcoin exchange traded funds already received regulatory approval and bitcoin is widely treated as a commodity within financial markets. Other layer one blockchain tokens including Solana, Avalanche and TON remain trapped in legal uncertainty without finalized federal guidance.
Scaramucci also pointed to broader political tensions surrounding President Donald Trump as another factor slowing legislative progress.
The delay could reshape institutional crypto adoption over the next several years. Analysts said large financial institutions generally require formal legal frameworks before allocating meaningful capital into new asset classes.
Without federal classification rules, many institutions remain restricted from expanding exposure beyond bitcoin related products. Compliance teams operating under fiduciary standards face liability risks when investing in markets lacking clear regulatory treatment.
Scaramucci argued that opposition to Trump has increasingly extended into crypto policy discussions. He pointed to disputes involving Trump linked crypto ventures, foreign policy tensions and defense spending battles that have intensified polarization in Washington.
The banking industry also continues lobbying against parts of the legislation, especially stablecoin provisions that could allow crypto firms to compete more directly with traditional deposit based banking products.
Market analysts warned that continued “regulation by enforcement” may increase long term volatility because firms and investors cannot predict how regulators may classify or target digital assets in future actions.
Scaramucci said prolonged delays could leave the broader crypto market trapped in what he described as an “extended chop” trading environment during the remainder of Trump’s term.
Researchers following institutional markets noted that unpredictable enforcement actions make long term portfolio sizing difficult for pension funds and large allocators. Analysts said institutions typically require defined legal frameworks before building less liquid or higher risk positions.
Some crypto advocates argue bitcoin benefits from operating outside traditional regulatory systems. Others counter that institutional investors require clear federal classifications rather than ideological arguments about decentralization.
Policy analysts also compared the Clarity Act’s slow progress with previous US financial legislation. Dodd Frank moved from crisis response to presidential approval within roughly 14 months, while the JOBS Act passed in less than a year. The Clarity Act has remained under active discussion since 2023 despite bipartisan House support last year.
The debate surrounding the Clarity Act has evolved beyond crypto regulation into a broader political and financial battle involving banks, regulators and institutional investors. While bitcoin continues attracting institutional inflows through ETFs, many other digital assets remain outside approved investment frameworks.
Lawmakers now face growing pressure to establish a legal structure before political divisions deepen further ahead of the midterm elections. Analysts warn that continued delays could slow broader institutional adoption and leave digital asset markets dependent on enforcement driven regulation for several more years.
The Senate Banking Committee hearing later this week may offer clearer signals on whether Congress can still move toward bipartisan crypto legislation before the current political window closes.
The Clarity Act emerged after years of regulatory disputes between crypto firms and US agencies following the collapse of major crypto companies including FTX in 2022. The legislation attempts to define which digital assets qualify as securities and which fall under commodity market rules. Congress passed a House version of the bill in July 2025 with bipartisan backing, but Senate negotiations have repeatedly stalled due to disagreements involving stablecoins, ethics rules and banking industry concerns. Institutional investors have increasingly entered bitcoin markets through spot ETF products approved in early 2024, but broader crypto adoption among pension funds and large financial firms remains limited. Banking groups continue arguing that stablecoins and crypto financial products could weaken traditional deposit systems. The outcome of the Clarity Act may ultimately determine how deeply digital assets integrate into mainstream US financial markets during the next decade.
