Galaxy’s Mike Novogratz Names The Deal He Thinks Gets The CLARITY Act To 60 Votes

The bill’s biggest obstacle, ethics rules involving President Trump’s crypto holdings, was recently cleared with a White House-backed compromise.

• Mike Novogratz said the CLARITY Act will clear the Senate’s 60-vote hurdle, noting a compromise over the bill’s ethics provisions.
• He said he expects Democrats to back a DOJ-enforcement framework, and predicted a floor vote could happen as soon as next month.
• Head of research Alex Thorn reduced his odds of passage this year to 30%, though Coinbase CEO Brian Armstrong remains optimistic.

Mike Novogratz, CEO of Galaxy Digital (GLXY), said on Saturday that the Digital Asset Market Clarity Act, also known as the CLARITY Act, will pass the 60-vote threshold in the Senate, and detailed the compromise he believed will help it get there.

Novogratz, speaking on the “All Things Markets” podcast with Anthony Scaramucci, said he expected a last-minute deal on the ethics provision, which has been the biggest obstacle to passing the bill. 

According to Novogratz, the bill was modeled on the Laken Riley Act, which would prohibit state attorneys general from suing the president or members of Congress, but allow them to sue the Department of Justice (DOJ) if they believed the law was not being enforced properly. Novogratz said Democrats wanted the issue off their plate and predicted a floor vote as early as next month.

GLXY stock closed down by over 6% on Friday. On Stocktwits, the retail sentiment around GLXY remained in the ‘neutral’ zone, while chatter around it stayed in the ‘normal’ levels over the past day.

The CLARITY Act Hurdle

The CLARITY Act has been held for weeks on the Senate floor over whether its ethics rules would apply to President Trump, whose family owns significant crypto assets. That hurdle was crossed when Sens. Cynthia Lummis (R-WYO) and Bernie Moreno (R-OH) agreed to White House language on the president’s ethics. 

Disagreement On The Desk

But not everyone at Galaxy agrees with the CEO.

The firm’s Head of Research Alex Thorn reduced his odds for the CLARITY Act passing into law this year to 30%, writing that the updated text of the bill was released on Wednesday but the votes to pass it were not there. He said it was time to stop the “incremental negotiations” and make “a last-ditch effort” on the bill, but hoped he was wrong.

He also said an internal poll of the firm’s trading, risk and research teams was split 50/50 on whether bitcoin has bottomed out.

Armstrong Sees 'One-Yard Line'

Novogratz’s prediction was the latest in a string of bullish signals from industry executives. Coinbase (COIN) CEO Brian Armstrong also said on Wednesday that the bill was ready for a full Senate floor vote and sitting at crypto’s “one-yard line.”

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