Citi says the CLARITY Act has made significant progress, but DeFi controversies may delay its passage

Citi stated that the U.S. CLARITY Act is becoming a core driver for the legalization of digital assets. Lawmakers plan to achieve key objectives in the spring, but disputes over the definition of DeFi and issues regarding stablecoin rewards may delay the final passage until after 2026. Citi pointed out that the definition of DeFi is the most challenging part to resolve, while stablecoin rewards are the area where compromise is most easily reached. In addition, Citi believes that hybrid models, pilot projects, or stricter securities labels may drive the development of tokenized stocks.