#CryptoClarityAct Here’s a breakdown of the Crypto Clarity Act (officially the Digital Asset Market Clarity Act of 2025, H.R. 3633), its current status, and implications:
---
📘 What is the CLARITY Act?
Defined Purpose:
Establishes legal definitions for digital assets (e.g., digital commodity vs. digital security) .
Creates a dual-regulator model:
CFTC oversees “digital commodities” on mature blockchains (e.g., Bitcoin, Ethereum).
SEC retains authority over securities-like tokens and primary-market activities like ICOs .
Protects user self-custody rights.
Sets standardized project disclosure obligations and delisting procedures .
Introduces registration for exchanges and intermediaries and aligns with Bank Secrecy Act AML/KYC rules .
---
🏛 Legislative Journey
May 29, 2025: Introduced by Rep. French Hill .
June 23, 2025: Passed out of House Financial Services & Agriculture committees .
July 17, 2025: House passed the Act by a 294–134 vote, as part of “Crypto Week,” alongside the GENIUS Act and Anti-CBDC bill .
Status: Now under Senate consideration. The Senate Banking Committee recently released a draft bill building on the CLARITY Act framework .
---
🏦 Market Impact
Institutional momentum: Bitcoin surged above $120K on expectations of regulatory clarity; large-cap tokens are benefiting most .
Valuation shift: As Bitwise’s Matt Hougan noted, it may establish a “on‑the‑run/off‑the‑run” pricing model, favoring large, liquid cryptos .
Boost to DeFi & exchanges: Clearer rules could legitimize and expand decentralized finance and trading platforms .
---
🛡 Industry & Regulatory Reactions
Crypto sector leaders (e.g., Coinbase’s Brian Armstrong) welcome clarity .
Criticism from investor advocates: Groups like Americans for Financial Reform and figures like Elizabeth Warren argue it weakens the SEC, reduces retail protections, and may give
