D’Agostino’s insights highlight the foundational role the CLARITY Act plays in the growth of the crypto sector. “It’s the kind of bill that is quite frankly more foundational for the growth of crypto or any real asset class,” he noted. This emphasizes the necessity for a thorough and complex legislative process.

CLARITY Act vs. Genius Act

In comparing the CLARITY Act with the Genius Act, which was enacted in July as stablecoin legislation, D’Agostino pointed out the latter’s relative simplicity. He acknowledged that while the Genius Act was “not simple, but transformative,” it addressed issues that were structurally less complex than those in market structure bills like the CLARITY Act.

Global Momentum for CLARITY Act

The global landscape is witnessing an increased momentum for crypto regulations, and the CLARITY Act is no exception. The White House’s crypto czar, David Sacks, suggested that the act might gain approval by January, aligning with President Trump’s call for comprehensive crypto market structure legislation. As D’Agostino mentioned, regulatory frameworks are gaining traction worldwide, including Europe’s MiCA regulations and the United Arab Emirates’ advances in regulatory clarity.

The “massive flight of talent” from the US due to regulatory uncertainty is a pressing concern. D’Agostino argued that this exodus might pressure lawmakers to expedite the CLARITY Act’s passage by 2026. He explained that the urgency to pass the Genius Act was partly to counteract this trend.

Challenges and Market Impact

The delays in the CLARITY Act have led to significant market uncertainty. CoinShares reported $952 million in outflows from crypto investments in December, attributing this to the prolonged regulatory uncertainty. Despite these concerns, veteran trader Peter Brandt believes that the act’s eventual passage might not dramatically impact Bitcoin’s price. “Is it a world-shaking macro development? Nope. Needed for sure, but not something that should redefine value,” he stated.

As the crypto industry continues to await the CLARITY Act, it remains clear that its passage is seen as a critical step for future growth and regulatory certainty. The act’s success will likely serve as a benchmark for other countries striving to develop their own crypto regulatory frameworks.

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According to Sacks, Senate Banking Committee Chair Tim Scott and Agriculture Committee Chair John Boozman have confirmed that the bipartisan crypto bill will be reviewed by the Senate soon. “We are closer than ever to passing the landmark crypto market structure legislation that President Trump has called for. We look forward to finishing the job in January!” stated Sacks.

Understanding the Crypto CLARITY Act

The Crypto CLARITY Act aims to define crypto securities and commodities, offering guidance on the roles of major regulatory bodies like the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The bill’s proponents believe it will significantly reduce regulatory uncertainty for crypto businesses, paving the way for innovation while ensuring robust investor protections.

Senate Markup: A Critical Step

This upcoming Senate markup represents a pivotal moment for the Crypto CLARITY Act. By bringing the bill closer to becoming law, it highlights the increasing importance of structured crypto regulation. The legislation seeks to provide clear compliance pathways, which could dramatically impact how crypto firms operate within the United States.

Throughout a challenging period, marked by a record 43-day government shutdown, US regulators remained committed to refining the Crypto CLARITY Act. They engaged in discussions with prominent industry figures from companies like Coinbase, Ripple, and Kraken, as well as tech-focused venture capital firms, including a16z and Paradigm.

The Impact on the Crypto Industry

The potential passage of the Crypto CLARITY Act could transform the landscape for digital assets. By establishing a unified regulatory approach, it aims to foster a more secure and predictable environment for both businesses and investors. This clarity is expected to drive innovation, attracting more players into the crypto space while enhancing the protection of investors.

In conclusion, the Crypto CLARITY Act stands as a significant legislative effort to define and regulate the burgeoning digital asset market. As it moves closer to Senate markup, the bill’s progress is closely watched by industry stakeholders eager for a solid regulatory foundation.

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The Senate Republicans’ proposed legislation aims to build upon the groundwork laid by the House-passed Clarity bill. The lawmakers also announced a request for information on Tuesday, emphasizing the importance of this development for the cryptocurrency sector.

“Our discussion draft embodies a thoughtful, balanced strategy that provides our innovators with the clarity they require while also ensuring strong consumer protections,” Lummis remarked. “We must put an end to the regulatory ambiguity that is currently driving American innovation overseas.”

Last week, the House garnered Democratic support to pass the Digital Asset Market Clarity Act with a 294-134 vote. The House’s comprehensive approach towards regulating the cryptocurrency industry involves creating a regulatory framework through the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission.

The Clarity Act also necessitates that digital asset companies provide retail financial disclosures and separate corporate and customer funds. Cryptocurrency advocates assert that clear regulations are vital to safeguard consumers and foster innovation.

Senator Scott expressed gratitude for the bipartisan efforts of their House counterparts and expressed anticipation to build upon their work in the Senate. He added, “In collaboration with President Trump, we can establish a comprehensive, bipartisan regulatory framework for digital assets.”

The draft released on Tuesday seeks to define an “ancillary asset” to clarify which digital assets are not securities. It also directs the SEC to adapt existing regulations to digital asset activities.

Earlier, Senators Scott, Lummis, and others had established principles and set a deadline of September 30 to regulate market structure, a task deemed challenging due to the industry’s complexity compared to the recently signed legislation regulating stablecoins.

Disclaimer: The Block is an independent media outlet that provides news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block operates independently to deliver objective information about the crypto industry. This article is intended for informational purposes only and does not constitute legal, tax, investment, financial, or any other kind of advice.

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As reported, Trump Media and Technology’s Bitcoin and related securities now account for about two-thirds of its near $3 billion liquid assets. The firm, which manages Trump’s Truth Social platform, intends to continue expanding its Bitcoin and associated securities portfolio, with a further $300 million already earmarked for a crypto asset options acquisition strategy.

Devin Nunes, Chief Executive, expressed that these assets are crucial to the financial independence of the company, offering protection against financial institution discrimination and fostering synergies with the upcoming utility token for the Truth Social network.

Trump Media has previously ventured into the crypto industry by filing to initiate a Bitcoin investment fund and launching Truth.Fi, a finance company that intends to invest approximately $250 million in cryptocurrencies and other assets.

Through the signing of the Genius Act into law, Trump has facilitated widespread adoption and investment in the crypto industry, providing oversight for stablecoins, a crypto asset usually tied to a government currency like the US dollar. Furthermore, Trump has been advocating for the passing of the Clarity Act, which would establish a definitive regulatory framework for digital assets.

Once critical of the industry, Trump last year pledged to make the US the “crypto capital of the world” and to reduce regulatory hurdles in the sector.

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Warren has warned that the Act’s provisions might allow any company listed on the New York Stock Exchange (NYSE) to put its stock on an approved blockchain. This could potentially enable firms to avoid SEC registration, leading to a reduction in investor protections and potentially destabilizing the NYSE.

Moreover, under the new draft, token sales using a functioning chain would still be considered as fundraising, but tokenized shares might evade SEC scrutiny.

Warren’s concerns indicate that companies might be able to raise funds without filing the same forms or sharing audited reports, thus bypassing proxy rules. This could expose retail investors to hidden risks if renowned stocks suddenly transition to the blockchain.

The House Agriculture Committee and the House Financial Services Committee have both approved the CLARITY Act. The Act now proceeds to the Senate, where its approval is not assured.

While the crypto industry eagerly watches these developments, Ripple CEO Brad Garlinghouse has urged for a clear regulatory framework to safeguard the industry’s future. In contrast, Americans for Financial Reform warn that the Act could diminish the SEC’s ability to protect retail investors, thus increasing the risk of scams and theft.

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House Resolution 580, which allows for the consideration of numerous bills, was approved with 217-212 votes, more than nine hours after the voting process commenced. This action effectively breathes new life into the bills that were previously defeated.

One such bill is the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) bill. It seeks to establish a regulatory framework for stablecoins and was passed in the Senate vote last month. If all goes well, GENIUS could find itself on President Trump’s desk before the week is out.

Other proposals include the Digital Asset Market Clarity Act, which provides a comprehensive approach to forming a regulatory framework for digital assets; and the Anti-CBDC bill, which aims to prevent the Federal Reserve from releasing a central bank digital currency (CBDC) directly to individuals. However, these bills still need to be voted on in the Senate.

Prior attempts to pass H.Res 580 were unsuccessful because some Republicans were concerned that the GENIUS bill could allow the Federal Reserve to issue a CBDC. However, bill leaders have since clarified that this would not be possible.

This issue was seemingly resolved when House Majority Leader Steve Scalise announced that Republicans will attach a CBDC ban to the National Defense Authorization Act (NDAA).

Following the successful vote, Scalise stated that the next House floor vote on these crypto bills will occur on Thursday, according to PunchBowl News.

This week, informally known as “Crypto Week” in Washington, is of great importance to the digital asset sector. The bills in question could potentially redefine the industry’s landscape in the United States and set a crucial precedent for future digital asset regulation.

Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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A spokesperson for the House confirmed that another attempt will be made at 5 p.m. ET. Another insider also echoed these sentiments. This comes during what’s being dubbed as the “Crypto Week”, where the House was planned to review the Guiding and Establishing National Innovation for U.S. Stablecoins (“GENIUS”) Act and the Digital Asset Market Clarity (“Clarity”) Act.

The GENIUS Act, which has already won Senate approval, necessitates that stablecoins be fully backed by U.S. dollars or similar liquid assets. It further imposes yearly audits for issuers with a market cap exceeding $50 billion and lays down regulations for foreign issuance. This bill could potentially reach the President’s desk by week’s end.

On the other hand, the Clarity Act aims to set a comprehensive regulatory framework for cryptocurrencies. It outlines how the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission will oversee the industry and mandates digital asset firms to offer retail financial disclosures and keep corporate and customer funds separate.

Disclaimer: The Block is a self-sufficient media outlet offering news, research, and data. As of November 2023, Foresight Ventures is the primary investor of The Block. Foresight Ventures also invests in other crypto-related companies. Crypto exchange Bitget is a key LP for Foresight Ventures. Despite this, The Block continues its independent operations, providing unbiased, impactful, and timely crypto industry information. Please refer to our current financial disclosures for more details.

© 2025 The Block. All Rights Reserved. This article is provided strictly for informational purposes. It is not a substitute for professional legal, tax, investment, financial, or other advice.

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Maxine Waters, the ranking member of the House Financial Services Committee, along with the ranking member of the digital assets subcommittee, Stephen Lynch, stated that they would spearhead the Democratic opposition against the Republicans’ attempts to pass what they term as “hazardous” legislation. Earlier this month, Republican leaders declared their intention to consider bills pertaining to payment stablecoins, the structure of the crypto market, and central bank digital currencies (CBDCs) starting Monday.

“Republicans are rapidly advancing a perilous package of crypto legislation through Congress,” Waters contended. She further criticized the bills for their lack of crucial consumer protections and national security measures, and for potentially implicating Congress in “Trump’s unprecedented crypto scam.”

Given the slim majority held by the Republicans in the House, it is uncertain whether they will garner enough support to pass all three crypto bills given the opposition led by Democrats like Waters and Lynch. The GENIUS Act, a bill aimed at regulating stablecoins, managed to pass in the Senate despite initial opposition from several Democrats. However, legislative debate often encompasses discussions about US President Donald Trump’s crypto ventures.

Lynch expressed concern over his Republican colleagues’ keenness to favor the crypto industry while seemingly disregarding the potential vulnerabilities and opportunities for abuse within the crypto sphere.

Reportedly, Trump added approximately $620 million to his personal portfolio within months due to his investments in the crypto industry, including his family-backed business, World Liberty Financial. This crypto company has also been scrutinized for issuing its own stablecoin, USD1, as lawmakers in Congress, potentially influenced by Trump, contemplate legislation to regulate the asset.

Republicans in the House plan to consider the Anti-CBDC Surveillance State Act and the CLARITY Act, in addition to the GENIUS Act. The former aims to prevent the development of a US government-issued digital dollar, while the latter seeks to establish a digital asset market structure.

On Friday, White House crypto advisor Bo Hines announced on X that he expects the GENIUS Act to pass without any amendments or provisions, thereby fast-tracking the bill to the president’s desk. However, efforts to pass a crypto market structure bill seem to be shifting to the Senate.

Tim Scott, Chair of the Senate Banking Committee, Hines, and Wyoming Senator Cynthia Lummis announced in June that the Senate would aim to draft, introduce, and pass a bill by September 30, preceding the House’s announcement of its “crypto week” plans for the CLARITY Act.

“This will be the best version of a market structure bill that has been debated in the House since 2023,” commented House Financial Services Committee Chair French Hill during the recent release of the Thinking Crypto podcast. “We’ll vote on it in the House. It will then proceed to the Senate where we’re looking forward to inputs from Senator Scott, Senator Lummis, Senator Gillibrand, Senator Hagerty, and others about market structure.”

A market structure bill would likely define the roles that major US financial regulators, particularly the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), would play in overseeing digital assets. The proposed bill in the House suggests assigning more authority to the CFTC for the registration and regulation of digital assets.

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House Finance Committee Chair French Hill, House Agriculture Committee Chair Glenn Thompson, and Speaker Mike Johnson all confirmed their commitment to use the week of July 14 to 18 to review a cryptocurrency market structure bill, a stablecoin bill, and a bill on Central Bank Digital Currencies (CBDCs).

“The Republican House is taking bold steps to implement President Trump’s comprehensive digital assets and cryptocurrency agenda,” stated Johnson. “During ‘Crypto Week,’ we eagerly anticipate the prompt review of three landmark pieces of legislation: the CLARITY Act, the Anti-CBDC Surveillance State Act, and the Senate’s GENIUS Act.”

President Trump had previously expressed his desire for the GENIUS Act to be passed before Congress goes into a month-long recess in August. The legislation would begin to fulfil Trump’s campaign promises on cryptocurrency, which received significant backing from the crypto industry.

Despite the House Finance Committee passing a similar bill, the STABLE Act, in May, the House has chosen to focus on the Senate-led GENIUS Act.

The GENIUS Act, which received bipartisan support and was passed by the Senate last month, if approved by the House without amendments, will be sent directly to President Trump for signing.

However, legal experts at Pillsbury Law have suggested that amendments may be made to key provisions, which would then require the bill to be sent back to the Senate for approval.

The CLARITY Act, a cryptocurrency market structure bill, could be next on President Trump’s desk if it passes the Senate. This legislation would make it mandatory for most crypto exchanges to register with the CFTC and would also set out rules for disclosure, customer asset segregation, and record keeping.

The final bill to be considered during ‘Crypto Week’ is the Anti-CBDC Surveillance State Act. This bill aims to prevent the Federal Reserve from testing, developing, creating, or issuing any form of digital currency.

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Last week, US Congressman French Hill introduced the first draft of the Clarity Act. This proposed legislation aims to establish a new asset class known as the “digital commodity”, which would permit approved assets to conduct fairly unrestricted trading on the secondary market and would grant the CFTC the majority of the regulatory authority over cryptocurrencies.

The CFTC, like the Securities and Exchange Commission and numerous other federal commissions, is comprised of five commissioners. Each commissioner must be confirmed by the Senate. Currently, one chair remains vacant, with more commissioners set to depart soon. This situation could potentially impede the CFTC’s capacity to effectively regulate the crypto industry, should the Clarity Act be passed.

The CFTC’s ability to regulate crypto has been limited due to the delay in the nomination process. In the past, when a presidential administration changes, the CFTC chair resigns to allow the president to appoint a new chair. However, the nomination of Brian Quintenz, a former commissioner and an a16z crypto head of policy, has been stalled for several months now.

Despite this, the CFTC has not ceased to function. Some of its functions, such as issuing or amending regulations, policy statements, exemptions, or no-action criteria, are carried out by the office of the chair. Nonetheless, these functions, particularly those that are controversial, will be challenging to execute with a split commission.

The crypto industry, however, doesn’t seem to be adversely affected by this situation so far. In fact, the lack of enforcement or a regulatory agenda from the CFTC has been seen as a remedy to the “regulation by enforcement” approach that was criticized during former President Joe Biden’s administration.

Yet, the current deadlock in the commission might soon become a critical issue, as other CFTC commissioners are set to step down. With no clear plan to address this issue in sight, it raises the question of whether betting the future of the cryptocurrency industry on the CFTC is a sensible move.

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