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Traders stop believing: CLARITY Act odds hit record lows on Polymarket

A year after the House passed crypto's market-structure bill, prediction markets put its 2026 chances near one-in-three — down from three-in-four this spring. What the money sees that the press releases don't.
BY MARISOL VEGA·PUBLISHED {{ published }}·5 MIN READ
One year after the House vote, the Senate is where the bill's odds go to shrink.
The market that prices political promises has repriced this one. On Polymarket, the contract asking whether the CLARITY Act becomes law by December 31 traded near a record-low 32% Friday — down from roughly 74% in May, and briefly as low as 24% earlier this week. The date is pointed: Friday marked one year since the House passed the bill 294–134 with sweeping bipartisan support. It has been parked in the Senate ever since.
The arithmetic problem hasn't changed — 60 votes — but the sticking points have hardened. Senate Democrats, led by Elizabeth Warren, have made ethics provisions targeting the sitting president's family crypto ventures a condition of support, pointing to disclosures putting the family's crypto-linked income in the billion-dollar range. The latest merged Senate draft, which grew by some 70 pages of consumer-protection language, conspicuously omits the ethics section. Add a separate fight over the bill's law-enforcement carve-outs, and the "weeks away" refrain from sponsors has aged into a punchline that traders with money at stake no longer buy.
The White House is still pushing. The president hosted wavering senators on Wednesday and has publicly demanded a bill on his desk before the chamber leaves town. But the calendar is the tell traders are watching: the Senate's August recess begins in three weeks, and after it, midterm campaigning consumes the floor schedule. Miss August, the market logic runs, and "by December 31" becomes a bet on a lame-duck sprint — the kind of trade that prices like a coin flip at best.
Not everyone reads the odds as gospel. Galaxy Research's head of firmwide research has publicly handicapped passage nearer 50%, arguing thin markets on legislative questions overreact to headlines. It's a fair caveat — this contract's volume is a rounding error next to the platform's sports books — but the direction of travel has been one-way since May, through drafts, hearings, and photo ops alike.
For bitcoin specifically, the stakes are more about plumbing than principle: bitcoin already sits comfortably in the commodity bucket the bill would formalize, and the spot ETFs trade under existing rules regardless. What the delay actually costs is the institutional on-ramp — banks, brokers, and custodians waiting for a statute before they build. The market that measures that patience just marked it down by half.
BITCOIN ALMANACK ANALYSIS
"CLARITY signed by Dec 31, 2026" — implied odds, 2026
70%
JAN
74%
MAY
51%
JUN
24%
JUL 13
32%
JUL 17
Approximate month-marker prices, Polymarket "CLARITY Act signed into law in 2026" · Chart: Bitcoin Almanack
WHY IT MATTERS
Regulatory clarity is the argument institutions cite for staying on the sidelines — and prediction markets are the cleanest live read on whether it's coming. A one-in-three market says plan for the status quo: state-by-state rules, SEC-CFTC ambiguity for everything that isn't bitcoin, and an institutional adoption curve set by courts and agencies rather than Congress.

What to watch next

1.The August recess. A floor vote scheduled before the Senate leaves would send the contract sharply higher; silence effectively resolves it.
2.The ethics standoff. Any Democratic co-sponsor publicly accepting the merged draft without ethics language would signal the 60-vote math changing.
3.The odds themselves. Watch whether volume grows as the deadline nears — thin markets get more informative as more money argues with them.

Frequently asked questions

What is the CLARITY Act?

The Digital Asset Market Clarity Act — the market-structure bill dividing crypto oversight between the CFTC and SEC and defining when a digital asset is a commodity versus a security. The House passed it in July 2025; it has been stuck in the Senate since.

Why did the odds fall so far?

Sixty votes, a hardened ethics standoff over the president's family crypto income, a disputed law-enforcement carve-out, and a calendar that runs out at the August recess. Each "almost there" headline that passed without a vote pushed the price lower.

Does this affect bitcoin directly?

Less than most assets — bitcoin is already broadly treated as a commodity, and the spot ETFs trade under existing rules. The cost of delay lands on market plumbing: the banks, brokers, and custodians waiting for a statute before they build.
SOURCES & DATA
Odds as of Friday afternoon ET, July 17, and will move. See our editorial process.
TERMS IN THIS STORY: CLARITY Act prediction market
Marisol Vega
Markets Reporter, ETFs & News. Tracking every spot ETF flow report since the funds launched; former wire-service markets desk.
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GO DEEPER
How does a market put a price on "will Congress act"? Our explainer on prediction markets.
What are prediction markets? →
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