#CryptoClarityAct
After nearly two decades of regulatory ambiguity, digital assets are at a pivotal moment in American financial law. On July 18, 2025, President Trump signed the “Guiding and Establishing National Innovation for US Stablecoins Act” (GENIUS Act) into law—establishing the first federal regulatory framework for stablecoins.[1] Just two days prior, the House of Representatives passed the Digital Asset Market CLARITY Act, marking Congress’s first serious attempt at a comprehensive regulatory approach to the chaotic digital asset landscape.[2]
While both measures reflect cryptocurrency’s growing legitimacy and influence, the CLARITY Act still falls short. It lacks the nuanced classification system needed to differentiate between foundational digital infrastructure and speculative excess.
I argue that economist Hyman Minsky’s Financial Instability Hypothesis provides a more robust foundation for digital asset regulation than the current binary securities vs. commodities framework. Rather than focusing on a token’s technological features or marketing language, regulators should assess digital assets based on cash-flow characteristics and systemic risk profiles.
This risk-oriented approach would allow for more sophisticated oversight—protecting investors from volatility-driven collapses while preserving space for legitimate innovation in blockchain and decentralized finance.