Galaxy Digital CEO Mike Novogratz stated that the fate of the key U.S. crypto bill, the CLARITY Act, now depends on just two or three unresolved issues. Warning that lawmakers have a strict four-week deadline to pass the document before the summer recess, the billionaire said he personally headed to Washington for an emergency series of meetings in Congress.
Based on Novogratz’s latest statement, he remains optimistic. However, his remarks came against the backdrop of a sharp rise in market skepticism, as the odds of the bill passing in 2026 on Polymarket fell from 62% to 48%.
3 regulatory roadblocks Novogratz is fighting in D.C.
Investors began to doubt its success because of closed-door White House meetings with law enforcement officials and the fact that several Democratic senators have already frozen their support for the crypto bill until it receives approval from law enforcement agencies.
Based on the statements from the Galaxy Digital chief and the current political backdrop, the three key problems slowing down the CLARITY Act appear to be the following:
- The status of Web3 developers: Mike Novogratz acknowledged that “the burden of change will not be distributed equally” as more than 60 industry leaders are demanding protection for software creators under the Blockchain Regulatory Certainty Act, or BRCA. They insist that open-source programmers and validators should not be treated the same as exchanges or brokers.
- The conflict with law enforcement: The crypto industry’s demands have run into strong resistance from U.S. law enforcement agencies as officials fear that removing developers from oversight would make it harder to fight money laundering. Without a compromise between law enforcement, Novogratz and other lobbyists, the bill will not move to a Senate vote.
- The congressional calendar deadlock: Novogratz directly called these four weeks the market’s last chance, because after the summer recess, the election season will begin. The businessman stressed that the election race will deepen the political divide in the country and make an agreement between the parties impossible.
Mike Novogratz described the work of lobbyists in Washington as “trench warfare” and praised them for their persistence. In his view, passing the law should show Americans that a divided Congress is still capable of working together.
