CLARITY Act faces steep odds in current session, GSR legal chief says

Joshua Riezman, chief legal and strategy officer at crypto market-making firm GSR, has cast doubt on the CLARITY Act’s chances of becoming law during the current congressional session, estimating the probability at under 50%. Speaking to The Block, Riezman said the odds, while low, are not zero, pointing to a complex political landscape that extends beyond stablecoin policy.

Political crosscurrents complicate stablecoin bill

The CLARITY Act, a bill aimed at establishing a federal regulatory framework for stablecoins, faces headwinds that go beyond technical policy disagreements. Riezman noted that both major political parties have unresolved questions regarding President Donald Trump and his family’s involvement in the cryptocurrency industry. This dynamic introduces an additional layer of complexity, particularly around whether the bill itself should address those ties.

Riezman’s assessment underscores a broader reality: even when there is bipartisan interest in stablecoin regulation, peripheral political factors can stall or derail progress. The involvement of a former president and his family in crypto ventures has created unusual cross-party scrutiny that lawmakers must navigate carefully.

What happens if the bill stalls

If the CLARITY Act does not pass during the current session, Riezman warned that its passage could face significant delays. A failure to advance now would likely push the legislation into the next congressional session, where political priorities and committee leadership may shift. This could reset negotiations entirely, extending the timeline for stablecoin regulation by years.

The stablecoin market, which has grown to tens of billions of dollars in circulation, currently operates under a patchwork of state-level regulations. Industry participants have long called for federal clarity to reduce compliance costs and foster innovation. The CLARITY Act represents one of the most serious attempts to provide that framework.

Why this matters for the crypto industry

For market participants, the timeline of stablecoin regulation carries real consequences. Without a federal framework, issuers face inconsistent rules across states, limiting scalability and increasing legal risk. A delayed CLARITY Act means continued uncertainty for firms building stablecoin products and services.

Riezman’s comments serve as a reminder that legislative outcomes in Washington are rarely predictable, especially when broader political dynamics enter the picture. Investors and businesses should prepare for a longer wait before stablecoins receive the clear federal oversight many have been hoping for.

Conclusion

The CLARITY Act faces steep odds in the current congressional session, according to GSR’s top legal strategist. While stablecoin regulation enjoys bipartisan interest, unresolved questions about presidential family involvement in crypto add a layer of political complexity that could delay passage. If the bill does not move now, a significantly longer wait is likely.

FAQs

Q1: What is the CLARITY Act?
The CLARITY Act is a proposed federal law that would create a regulatory framework for stablecoins in the United States, aiming to provide clearer rules for issuers and users.

Q2: Why does GSR’s Joshua Riezman think the bill has low chances?
Riezman cited political complexities beyond stablecoin policy, including bipartisan scrutiny of President Trump and his family’s involvement in the crypto industry, which complicates the bill’s path through Congress.

Q3: What happens if the CLARITY Act does not pass this session?
If it fails to pass, the bill would likely face significant delays, potentially resetting negotiations in the next congressional session and extending the timeline for federal stablecoin regulation by years.