Pro-XRP lawyer John Deaton has predicted that the CLARITY Act is unlikely to pass again this year if the crypto bill’s progress stalls until the Summer. He noted how the Senate is likely to turn its attention to the midterm elections in November, with Democrats currently projected to take both the Senate and House.
John Deaton Warns About CLARITY Act Delay
In an interview on the Paul Barron network, the pro-XRP lawyer said that the crypto bill’s passage is unlikely if it drags into the summer months. This came as he highlighted the importance of advancing the bill right now, even as the U.S.-Iran war threatens to stall the legislative process.
Deaton explained that attention is likely to shift to the midterms in the summer months, which makes it unlikely that the CLARITY Act will pass this year. He also warned that the crypto bill is at risk of not passing after the midterms, especially if both the Senate and House flip and Democrats gain control of Congress.
The lawyer further cited how anti-crypto Senator Elizabeth Warren will become the Chairperson of the Senate Banking Committee if Democrats regain control of the Senate. As such, this will make it harder for the crypto bill to even advance out of the committee stage.
Interestingly, Deaton could be pivotal in determining the CLARITY Act’s future as he is currently running for the U.S. Senate as a Republican. At the moment, there is currently a 53% chance that the Democrats will sweep the midterm elections, according to Polymarket data.
The crypto bill’s markup is expected to hold this month after the Senate returns from its recess. The clash between the banks and the crypto industry over the stablecoin yield remains the major roadblock to the bill’s progress. However, Coinbase CLO Paul Grewal said that a deal on the stablecoin rewards could happen soon.
On Stablecoin Rewards Ban In The Crypto Bill
Deaton also commented on the clash between the banks and the crypto industry over the stablecoin yield provision in the CLARITY Act, noting that arguments for stablecoin rewards were valid. However, he remarked that a lack of regulatory certainty and going back to ‘Gensler 2.0’ would be the worst-case scenario.
As such, the pro-XRP lawyer backed the position of White House crypto adviser Patrik Witt and Ripple CEO Brad Garlinghouse that they cannot let perfection stand in the way of the crypto bill’s progress. It is worth noting that the current stablecoin rules in the CLARITY Act ban payment of stablecoin rewards on balances and limit yield to activity-based rewards.
Deaton reiterated that it is disturbing that stablecoin holders cannot earn passive yields, but that at the same time, “perfection cannot get in the way of good.” Crypto traders currently have mixed sentiments about whether President Trump will sign the crypto bill this year. There is currently a 58% chance of that happening, according to Polymarket data.
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