Democrats resist GOP offer citing stablecoin loopholes and tribal sovereignty concerns, reducing CLARITY Act odds.

Key Democrats are resisting the "final" offer from the GOP, leading to a notable decline in the CLARITY Act's chances. The overall likelihood of this legislation passing has fallen to 16 percent. This resistance by Democratic lawmakers stems from specific concerns highlighted by two distinct groups regarding the provisions within the GOP's proposed text.

Banking groups have stated that the GOP's final text leaves stablecoin reward loopholes. Separately, tribal gaming interests have issued a warning that the bill's prediction market provisions threaten tribal sovereignty. These objections from both banking and tribal gaming sectors represent key points of contention impacting the CLARITY Act's progress.