Grayscale Head of Research Zach Pandl said crypto ran roughly 17 years without US market-structure rules and that the CLARITY Act now looks unlikely to pass in 2026, with a Senate floor vote set after lawmakers return on September 15. He expects the SEC and other regulators to fill gaps through rulemaking—especially on tokenized securities—and credited progress in institutional custody, clearer staking policy and growth in crypto ETPs. Pandl warned the delay could divert new investment and developer activity overseas, creating downside risk for US crypto adoption and market growth.

Bearish

Predictions Markets

See what traders are focused on

View analytics →

In Brief

Grayscale's Zach Pandl says crypto can advance even without the CLARITY Act.
He notes the industry ran 17 years without US market structure legislation.
Grayscale expects SEC rulemaking to fill gaps, especially around tokenized securities.

Grayscale Head of Research says the crypto industry can keep moving forward even if the CLARITY Act, the bill that would set US rules for digital asset markets, fails to pass this year.

Zach Pandl said full passage looks unlikely in 2026, given the crowded Senate calendar and election-year politics.

Crypto Ran 17 Years Before the CLARITY Act

Pandl noted that digital assets operated for roughly 17 years without comprehensive US market structure rules. Progress, he said, can continue through regulators rather than Congress.

“CLARITY not passing won’t have an immediate impact on the functioning of major blockchains, the demand for Bitcoin as a store of value, or on the growth of stablecoin payments,” he said.

He expects the Securities and Exchange Commission (SEC) and other regulators to fill gaps through rulemaking, particularly around tokenized securities. He pointed to the regulators interpretative guidance on the application of Federal securities laws to crypto assets, calling it a “big step forward for the industry.”

Pandl also credited the Trump-era policy for aiding the sector. He cited new institutional custody rules, improved access to banking, clearer staking policies, and growth in crypto exchange-traded products (ETPs).

“Crypto will move forward without CLARITY, supported by expected rulemaking by the SEC and other regulators,” Pandl added.

Grayscale Warns Activity Could Move Abroad

Nonetheless, without clear rules at home, the executive cautioned that a growing share of new investment and developer activity could drift to overseas markets. He framed the delay as a missed opportunity rather than a crisis for domestic crypto markets.

“The lack of comprehensive market structure legislation could hold back new investment activity in the United States,” he wrote.

Meanwhile, Senate Majority Leader John Thune filed cloture on the motion to proceed, setting up a floor vote after lawmakers return on September 15.

🚨NEW: Majority Leader Thune filed cloture on the motion to proceed to the Clarity Act. It will be voted on by the Senate after they return at 2:15 PM on Tuesday, September 15, as agreed to by the Senate this morning. https://t.co/Px46k5GTlp
— Eleanor Terrett (@EleanorTerrett) August 8, 2026