Expectations and uncertainty are rising over the U.S. crypto market structure bill known as the Clarity Act. Former House Financial Services Committee chairman Patrick McHenry called it the most important technology legislation since the 1996 Telecommunications Act, but prediction markets put the chance of enactment by Dec. 31, 2026 at 32 percent. A key variable is an ethics provision limiting crypto-related profits by senior officials, amid Democratic demands to strengthen it and a tight Senate timetable.

U.S. Federal Reserve Chair Kevin Warsh said the central bank would not step in with bailouts even if the cryptocurrency industry falls into crisis. He made the remarks at a semiannual monetary policy hearing of the House Financial Services Committee. Warsh said the 2008 financial crisis bailouts fueled moral hazard and he does not want to repeat it, though he did not rule out action to limit extraordinary risks.