Clarity Act Poised to Deliver First Comprehensive US Crypto Regulation
US senators introduced the bipartisan Clarity Act, set to establish the first comprehensive US crypto regulation. Building on earlier bills, it clearly divides oversight between the SEC and CFTC: the SEC will supervise securities-like tokens and the CFTC will oversee mature decentralized commodities. The bill covers stablecoins, DeFi protocols, AML rules, and protections for non-custodial developers, while allowing community banks to custody digital assets. Senator Lummis aims for a Banking Committee vote by year-end and full Senate debate in early 2026. She praised flexible SEC programs, criticized delays after a leaked DeFi draft, and backed a Strategic Bitcoin Reserve to help offset national debt. This crypto regulation framework aims to reduce market uncertainty, spur institutional adoption of digital assets and foster long-term market growth.
Bullish
The Clarity Act significantly reduces regulatory uncertainty by defining clear SEC and CFTC roles, covering stablecoins, DeFi and custody rules. In the short term, traders may bid up Bitcoin (BTC) and other assets on expectations of smoother approvals and institutional inflows. Long term, legal clarity should bolster market stability, attract institutional capital and support sustainable growth. Overall, this comprehensive crypto regulation framework is likely to have a bullish impact on the market.