John Deaton, a pro-XRP attorney, predicted that the CLARITY Act is unlikely to pass again this year if progress on the cryptocurrency bill stalls until the summer. He noted that the Senate is likely to turn its attention to the midterm elections in November, with Democrats currently expected to control the Senate and House.
John Deaton warns against delaying clarity law
In an interview on Paul Barron NetworkThe pro-XRP lawyer said passage of the cryptocurrency bill is unlikely if it continues into the summer months. This came as he highlighted the importance of moving forward with the bill at the present time, even as the US-Iran war threatens to disrupt the legislative process.
Deaton explained that attention is likely to shift to the midterm elections in the summer months, making it unlikely that the Clarity Act will be passed this year. He also warned that the cryptocurrency bill is at risk of not passing after the midterm elections, especially if the Senate and House flip and Democrats take control of Congress.
The lawyer also pointed out how anti-crypto Senator Elizabeth Warren will become chair of the Senate Banking Committee if Democrats regain control of the Senate. As such, this will make it difficult for the cryptocurrency bill to even advance beyond the committee stage.
Interestingly, Deaton could be pivotal in determining the future of the Clarity Act because he is currently running for the US Senate as a Republican. Right now, there’s a 53% chance Democrats will sweep the midterms, according to Polymarket data.
The cryptocurrency bill is expected to continue tokenization this month after the Senate returns from recess. The conflict between banks and the cryptocurrency industry over stablecoin yields remains the main obstacle to the bill moving forward. However, Coinbase CLO Paul Grewal said that A Transact on stablecoin rewards It could happen soon.
Regarding the ban on stablecoin rewards in the cryptocurrency bill
Deaton also commented on the clash between banks and the cryptocurrency industry over the stablecoin yield provision in the CLARITY Act, noting that the arguments regarding stablecoin rewards were valid. However, he noted that a lack of regulatory certainty and a return to “Gensler 2.0” would be a worst-case scenario.
As such, the pro-XRP lawyer supported the position of White House cryptocurrency adviser Patrick Witt and Ripple CEO Brad Garlinghouse that they cannot let perfectionism stand in the way of the cryptocurrency bill’s progress. It is worth noting that the current Stablecoin rules in the CLARITY Act Ban the payment of stablecoin rewards on balances and limit the return on activity-based rewards.
Deaton emphasized that it is troubling that stablecoin holders cannot achieve negative returns, but at the same time, “perfection cannot stand in the way of good.” Cryptocurrency traders currently have mixed feelings about whether President Trump will sign a cryptocurrency bill this year. There is currently a 58% chance of this happening, according to Polymarket data.
