Crypto Industry Awaits US Regulatory Clarity With CLARITY Act

Coinbase CEO Brian Armstrong has announced that the United States is poised to embrace cryptocurrency, with the House of Representatives expected to pass the CLARITY Act next week. The Senate is anticipated to follow suit shortly thereafter, paving the way for the bill to become law once signed by President Trump. The CLARITY Act, formally known as the Digital Asset Market Clarity Act, aims to establish clear regulatory boundaries between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) in overseeing digital assets.

A coalition of 65 cryptocurrency advocacy groups and firms, led by Coinbase's Stand With Crypto, has been actively pushing for the passage of the CLARITY Act. The group sent a letter to Congress urging the advancement of the legislation, which seeks to grant primary jurisdiction over most cryptocurrencies to the CFTC while maintaining SEC oversight of crypto-related securities. The letter, signed by over 65 crypto founders representing more than 6,100 jobs across 21 states, underscores the significance of regulatory clarity for the continued innovation and growth of the cryptocurrency industry within the United States. The coalition warns that without clear regulations, American leadership in blockchain technology could decline, as the lack of standardized rules hinders institutional adoption and drives talent and businesses toward more crypto-friendly international jurisdictions.

Republican House leaders have designated the week beginning July 14 as "Crypto Week," during which they plan to consider the CLARITY Act alongside two other major cryptocurrency bills. House Speaker Mike Johnson announced that the chamber will also review the Anti-CBDC Surveillance State Act, which would ban central bank digital currencies, and the GENIUS Act for stablecoin regulation. The GENIUS Act is expected to receive priority treatment as it has already passed the Senate and received endorsement from President Donald Trump for rapid passage.

However, the path to enactment for the CLARITY Act may face complications due to Democratic opposition. Senate Democrats previously blocked quick passage of the GENIUS Act, citing concerns about Trump's expanding cryptocurrency business interests, which have reportedly added at least $620 million to his net worth. House Financial Services Committee Democrat Maxine Waters has criticized the CLARITY Act as "rushed" and "overly complicated," arguing it would exempt risky crypto activities while legitimizing what she termed "Trump's crypto con."

The push for the CLARITY Act comes at a time when the cryptocurrency industry is seeking greater regulatory clarity to foster innovation and growth. The legislation, if passed, would provide a framework for the oversight of digital assets, potentially attracting more institutional investment and talent to the United States. However, the political landscape and potential opposition from Democratic lawmakers could pose challenges to its swift enactment.