The midterm elections in November could cause some Senate Democrats to withhold support for the Responsible Financial Innovation Act due to conflict of interest concerns.
Investment bank TD Cowen reportedly warned that the 2026 midterm elections in the United States could pull support needed to pass a digital asset market structure bill under consideration in the Senate.
According to reports, TD Cowen’s Washington Research Group said on Monday that the market structure bill, named the CLARITY Act when passed by the US House of Representatives in July but called the Responsible Financial Innovation Act in the Senate, was more likely to pass Congress in 2027, with final implementation potentially in 2029.
According to the investment bank, Senate Democrats could withhold support for the bill with elections that could potentially change the balance of power in Congress, currently favoring Republicans. The lawmakers could delay or stall on the bill until after the midterms, after which time another party may be in the majority.
