#CryptoClarityAct 1. ⚠️ Crypto Crash Today
• The market experienced a sharp dip after the SEC abruptly revoked its approval of Bitwise’s $1.7 billion diversified crypto ETF—only hours after granting it—by invoking Rule 431. This dramatic reversal sparked confusion and a sell-off across altcoins, rattling investors .
• This weekend dip reflects broader uncertainty after the SEC’s flip-flop on ETF strategy.
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2. CLARITY Act
• The Digital Asset Market Clarity Act passed the House on July 17, 2025, with a 294–134 vote. It sets a functional framework: assets classified by decentralization level instead of the Howey Test, and designates oversight between the CFTC and SEC .
• It establishes new registration categories (like digital commodity exchanges and brokers), a certification process for token projects, and clears regulatory pathways for DeFi and custody .
• The act now moves to the Senate, where industry feedback is being gathered .
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3. ETFs & the SEC
• Despite approving spot Bitcoin and Ethereum ETFs earlier, the SEC paused altcoin ETF conversions (e.g., Solana, XRP, Cardano via Grayscale) pending clearer guidelines .
• The Bitwise ETF episode highlights the SEC’s capricious and evolving stance, as it balances risk caution with regulatory pressure to allow more diversified crypto investment products.
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4. Broader Regulatory Context
• This week in Congress, several crypto-focused bills advanced:
• GENIUS Act (stablecoin regulation),
• CLARITY Act, and
• Anti-CBDC Surveillance State Act (bans U.S. central bank digital currency)    .
• The CLARITY Act clarifies jurisdiction, but Democrats like Maxine Waters have criticized it as a “casino for crypto billionaires,” citing conflicts of interest
