Baselinet: Prospects of passing the <i>CLARITY Act</i> will be completely dashed if Democrats control the House after the midterm elections

BlockBeats News, February 14th, U.S. Treasury Secretary Scott Bessent suggested that advancing the "CLARITY Act" could help improve market sentiment amid the current prolonged downturn.

Bessent said in an interview with CNBC on Friday that concerns from cryptocurrency industry executives have negatively impacted the industry due to obstacles in advancing the "CLARITY Act." He stated: "As we are experiencing this historic sell-off, I believe that providing clarity on the 'CLARITY Act' would bring great confidence to the market, allowing us to move forward from here."

However, Bessent added: "If the Democrats take control of the House, which is not what I hope for, then the prospect of reaching an agreement will be completely shattered."

Bessent noted that considering the power shift that may occur in the 2026 midterm elections, it is "crucial" to expedite the passage of the bill and have it sent to President Trump for signing by the U.S. spring (late March to late June).

According to U.S. House data, the Republicans currently hold a slim majority with 218 seats to 214.

On Polymarket, 47% of traders believe that the 2026 midterm elections will result in a "split Congress," with each party controlling one chamber.