Galaxy Research slashed its probability estimate for the CLARITY Act passing to 30%, calling for a last-ditch legislative effort. Seven Democratic negotiators publicly rejected the latest draft, demanding stronger ethics guardrails and consumer protections before they will support it. The bipartisan coalition that earlier advanced the bill is visibly fracturing ahead of a narrow congressional calendar.
For Armada's crypto-repo desk, CLARITY Act passage would have provided clearer statutory definitions distinguishing digital commodities from securities, directly affecting how BTC, ETH, SOL, and HYPE collateral is classified in repo agreements. A 70% failure probability means those classifications remain contested; any counterparty MRA or GMRA referencing regulatory-event clauses should be reviewed with counsel now.