The U.S. Securities and Exchange Commission (SEC) has announced its readiness to establish regulatory rules for cryptocurrencies should Congress fail to pass the Clarity Act. The Clarity Act, formally known as the Digital Asset Market Clarity Act of 2025, aims to delineate regulatory responsibilities between the SEC and the Commodity Futures Trading Commission (CFTC). AdvertisementThe announcement has had a notable impact on the prediction markets for the Clarity Act being signed into law in 2026. Market odds for the Clarity Act being signed into law in 2026 have decreased, consistent with doubts about Congressional action. What to WatchThe next steps for the Clarity Act will be crucial.