TD Cowen says crypto bill window extends to August recess, reiterates potential delay to 2027

TD Cowen analysts suggest the timeline for passing the CLARITY Act extends to the August congressional recess, dismissing the need for a deal before Easter. They note that primaries concluding later in the year could ease negotiations. The bill's progress is hampered by disagreements between the crypto and banking industries regarding stablecoin yields and Democrats' demands for conflict-of-interest provisions. While a deal is still possible, TD Cowen reiterates the potential for a delay until 2027, particularly if Democrats gain control of the House in the 2026 midterms. They believe a lack of action in 2026 would be neutral for crypto, as the SEC will continue to provide regulatory guidance, and lessons learned could lead to better legislation in the future. The August recess is considered the last meaningful window for passing the bill this year, as September and October offer limited legislative time.

(Source：The Block)