Kevin O’Leary says Congress will revisit CLARITY early next year as crypto tax bill advances

Shark Tank host and investor Kevin O’Leary told attendees at the Avalanche Summit in New York that he expects Congress to return to the CLARITY Act in the first or second quarter after the midterm elections, citing progress on a separate crypto tax bill.

Failed Senate vote delays CLARITY

O’Leary noted that the CLARITY Act, which aims to create a federal framework for crypto markets and define the roles of the SEC and CFTC, failed to secure the 49 of 60 Senate votes needed for advancement. He described the outcome as a delay rather than a defeat.

House advances crypto tax legislation

The House Ways and Means Committee moved forward the Digital Asset Tax Certainty Act, targeting tax rules for staking, mining, small crypto transactions and broker requirements. O’Leary argued that establishing tax rules without broader market‑structure policy creates pressure for further regulation.

Taxation drives demand for regulatory clarity

According to O’Leary, once activities such as staking are taxed, “you’ve got to have policy.” He believes the emerging tax revenue will compel lawmakers to clarify the regulatory environment for crypto activities.

Timeline for future action

O’Leary expects Congress to revisit market‑structure legislation after the midterm elections, regardless of which party controls the chamber, with a likely window in the first or second quarter of the following year.