The Clarity Act just lost momentum.
Prediction markets show the odds of the bill passing have dropped sharply, reflecting political friction and stalled Senate discussions.
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At first glance, that sounds like a setback for crypto regulation in the United States.
And it is.
But something else is happening at the same time. Tokenized U.S. Treasuries are already trading.
What happened to the Clarity Act
The Clarity Act was designed to define regulatory boundaries for digital assets in the United States. It aimed to reduce ambiguity around classification and oversight.
Recently, however, Senate negotiations hit resistance. Political divisions and competing priorities slowed progress.
Polymarket odds fell as traders priced in lower probability of near-term passage. The bill is not dead. But political momentum has weakened. And politics moves slowly. Too slowly, sometimes.
Meanwhile, tokenized Treasuries advance
While legislative debates continue, financial markets are not waiting.
The SEC recently allowed WisdomTree’s tokenized Treasury fund to trade at $1 throughout the day, effectively treating it as a stable-value instrument.
That’s a pretty significant development.
Tokenized Treasuries represent real-world assets issued and settled on blockchain rails. They combine government debt, digital settlement, and institutional custody. This is operational, not theoretical.
The gap between what Congress debates and what markets build
Here’s the divergence. On one side: political gridlock, slower legislative clarity, reduced odds for sweeping reform. On the other: SEC-approved tokenized funds, institutional participation, active trading infrastructure.
The Clarity Act may stall, but tokenization is progressing through existing regulatory pathways.
Markets are adapting within the current framework rather than waiting for new laws. Because waiting could mean years. And years, in crypto, feel like decades.
What this means for crypto
Crypto often treats legislation as the main driver of progress.
But implementation can move ahead of politics.
Tokenized Treasuries show that regulated digital assets can expand even when Congress debates broader definitions. The gap between political speed and market speed is widening.
If new laws take time, institutions will use what is already permissible.
The Clarity Act’s struggles highlight uncertainty at the policy level. Tokenized Treasury growth highlights confidence at the infrastructure level.
And increasingly, infrastructure moves first, with or without the legislation everyone hoped would arrive sooner.
It’s progress, yes. Just not the kind anyone wanted.
Cryptocurrency and Web3 expert, founder of Kriptoworld
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With years of experience covering the blockchain space, András delivers insightful reporting on DeFi, tokenization, altcoins, and crypto regulations shaping the digital economy.
📅 Published: February 25, 2026 • 🕓 Last updated: February 25, 2026
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