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This week, the Digital Clarity Act (CLARITY Act) faces sharp political gridlock as a crucial vote session approaches on September 15. Here’s the summary in the briefest possible terms:

Failure probability: Expectations for the law’s passage on the Polymarket platform have dropped sharply to just 14% due to political disagreements over the “ethics clause” related to investments by Donald Trump.

Treasury warning: The U.S. Treasury Secretary warned that if the law fails, America will lose its technological leadership to international competitors.

Banks vs. crypto: Traditional banks are pushing to block the law out of concern for their deposits, while crypto platforms (such as Coinbase) insist the market will grow even if the law fails, thanks to alternative frameworks from regulatory bodies.

The next step is a Senate vote on Tuesday, September 15, to open the door to official debate on the law.

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