#CryptoClarityAct

After nearly twenty years of regulatory ambiguity, digital assets have reached a pivotal moment in American financial policy. On July 18, 2025, President Trump signed into law the “Guiding and Establishing National Innovation for U.S. Stablecoins Act,” commonly referred to as the GENIUS Act. This legislation establishes a federal regulatory framework specifically for stablecoins.[1] Just two days earlier, the House of Representatives passed the Digital Asset Market CLARITY Act—marking the first significant congressional attempt to create a comprehensive regulatory structure for the complex digital asset ecosystem.[2] While these legislative developments reflect the growing prominence of cryptocurrencies, the CLARITY Act lacks the nuanced classification framework necessary to differentiate between foundational digital infrastructure and speculative or volatile assets.

In this context, economist Hyman Minsky’s financial stability hypothesis offers a more refined approach to regulating digital assets than the current binary classification of securities versus commodities. By evaluating digital assets based on their cash-flow properties and their potential impact on systemic financial stability—rather than their technological structure or marketing language—regulators can design more effective oversight strategies that safeguard investors while supporting meaningful innovation in the financial sector.