Grayscale Head of Research Zach Pandl has stated that the US cryptocurrency industry can expand even if the CLARITY Act is not passed in 2026. Pandl argued the Act’s failure would not have an immediate impact, as stablecoins would still function as payment methods and Bitcoin would continue as a store of value. The industry has operated for nearly 17 years without comprehensive market-structure legislation. However, Pandl warned that without clear rules, a greater share of new investment may occur overseas. Polymarket odds of the Act’s approval in 2026 stand at 21%, down 44%.
Zach Pandl, Head of Research at Grayscale, contends that the US crypto industry can still expand even if the CLARITY Act is not passed into law in 2026. He bases this on the idea that significant portions of the crypto ecosystem are already operating without extensive market-structure legislation.
In practice, the Act’s failure “won’t have an immediate impact” on the crypto market. Stablecoins would still be used as payment methods, and Bitcoin would continue to function as a store of value.
“The legislation would have provided a more comprehensive rulebook for digital assets in the US, but the industry has moved forward for almost 17 years without it,” Pandl said.
The greater worry is about innovation and investment in the US. The CLARITY Act was created to give digital assets a clear regulatory framework.
Without that framework, investors and businesses might be left in the dark about securities laws, tokenized asset issuance, and crypto regulations. As Pandl stated, the SEC and other regulatory rulemaking can help close this gap, especially since the current administration has made strides in institutional crypto custody, banking access, staking, and crypto exchange-traded products.
“Crypto will move forward without CLARITY, supported by expected rulemaking by the SEC and other regulators. However, without comprehensive market structure rules, a greater share of new investment may occur overseas, in our view,” he added.
Polymarket odds of CLARITY Act approval in 2026 stand at 21% — a drop of 44%.
According to Patrick Witt, Executive Director of the President’s Council of Advisors for Digital Assets, Congress had more than enough time to agree on the Act. Further delays are turning this into a political issue rather than a drafting one.
Pro-crypto Democrats, including Senate Minority Leader Chuck Schumer, pushed for more time to negotiate before the August recess. Witt said lawmakers should go past political differences and take action before the legislative window closes.
“If they can’t get there by September 15, they never will,” he said.
