May Timeline Expected for Landmark US Crypto Legislation, Predicts Billionaire Investor Mike Novogratz

According to Mike Novogratz, the CEO of Galaxy Digital, the US CLARITY Act is poised to bring much-needed regulatory clarity to the country's crypto sector, with a probable finalization date set for May. In a podcast conversation with Anthony Scaramucci, founder of SkyBridge Capital, which was uploaded to YouTube on Friday, Novogratz expressed confidence that the Act will be completed, with the committee review likely taking place in early May, followed by President Trump's signature in June.

The timely passage of the CLARITY Act is crucial for both Democrats and Republicans, as it will have far-reaching implications for the crypto industry, which has faced disappointment after the Senate Banking Committee failed to schedule a markup hearing by the anticipated deadline. Novogratz emphasized that the legislation will enable large institutions, such as Google and SpaceX, to tokenize and sell their assets globally, thereby expanding their reach.

The potential impact of the CLARITY Act is significant, with Novogratz estimating that it could open up the US economy to over 5 billion people worldwide, many of whom currently lack access to traditional financial products. By providing a crypto wallet on their mobile devices, individuals from countries like Bhutan, Bolivia, and Paraguay will be able to participate in the US economy, marking a major shift in global financial inclusion.

The passage of the CLARITY Act is seen as a catalyst for innovation in the US, particularly after several firms left the country during the previous administration due to unfavorable regulatory conditions. Despite initial expectations that the Act would clear Congress earlier this year, following its bipartisan passage in the House in July 2025, progress has been slowed by ongoing disputes, including a contentious debate between the banking sector and the crypto industry over stablecoin yields.

US Senator Cynthia Lummis has warned that the window for passing the bill is rapidly closing, stating that failure to do so would jeopardize America's financial future. Some industry executives, however, remain skeptical about the Act's chances of passing this year, with Alex Thorn, head of firmwide research at Galaxy Digital, estimating the odds of passage in 2026 at 50%. Thorn has noted that if the markup hearing is delayed beyond mid-May, the prospects for passage will diminish significantly.