U.S. House Set to Pass CLARITY Act Boosting Crypto Regulation

The U.S. is on the verge of a transformative shift in its approach to cryptocurrency regulation with the anticipated passage of the CLARITY Act. This legislation is designed to establish a clear and comprehensive regulatory framework for digital assets, addressing long-standing ambiguities that have impeded the growth and adoption of cryptocurrencies within the country. The CLARITY Act aims to delineate the roles of key regulatory agencies, such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), in overseeing the crypto market. By doing so, it seeks to provide much-needed clarity for consumers, businesses, and innovators operating in the digital asset space.

Brian Armstrong, CEO of Coinbase, announced on July 9, 2025, that the U.S. House of Representatives is set to pass the CLARITY Act, with the Senate poised to follow shortly. This regulatory action is expected to establish clear boundaries between the CFTC and SEC, modifying the U.S. crypto environment. The bill may boost institutional involvement and expand on-chain liquidity as structures are clarified. The Stand With Crypto initiative, which involves 65 crypto firms and leaders, has actively supported this bill. These efforts underscore the industry’s push for regulatory clarity, aligning with broader market expectations.

Market reactions have been noticeable with rising optimism in crypto circles. Coinbase's role as a major trading hub anticipates further influence if the bill passes. According to Brian Armstrong, "The United States is poised to embrace cryptocurrency, with the House of Representatives expected to pass the CLARITY Act next week..." Such statements have fueled investor interest, particularly among institutional stakeholders. Analysts highlight a 38% surge in Coinbase stock amid these developments.

The U.S. Senate Banking Committee is also set to hold a hearing on digital asset market structure rules, further underscoring the government's commitment to addressing the regulatory challenges posed by cryptocurrencies. This hearing will come after the Senate passed legislation to address stablecoin regulation, indicating a comprehensive approach to regulating various aspects of the crypto market. The administration's working group on digital assets is also expected to release a comprehensive cryptocurrency policy report by July 22. This report aims to bolster U.S. leadership in the crypto sector through regulatory clarity and strategic initiatives, including the establishment of a Strategic Bitcoin Reserve.

The report is expected to address several key areas, including the establishment of a Strategic Bitcoin Reserve, which will treat Bitcoin as a strategic asset without imposing any burden on taxpayers. This move is unprecedented, as it marks the first formal adoption of Bitcoin as a state asset, contrasting with traditional reserves like gold or oil. The report also aims to improve access to banking for crypto firms, potentially increasing liquidity for major cryptocurrencies like Bitcoin and Ethereum. Market watchers and industry experts have welcomed the report as a productive step towards a clear cryptocurrency roadmap. The report's release is expected to influence market dynamics, particularly for Bitcoin and Ethereum, by exploring regulatory clarity and fair banking access. This shift could impact banking participation and Treasury policies, further solidifying the U.S. as a leader in the digital asset arena.

The timing of the report's release is strategic, coinciding with the administration's broader efforts to enhance U.S. leadership in the global digital asset market. By providing a clear regulatory framework, the administration aims to foster innovation while ensuring that the market remains secure and transparent. This move is likely to have far-reaching implications for both domestic and international stakeholders, as it sets a precedent for how governments can engage with the crypto sector. The report's release is also expected to influence ongoing legislative efforts, such as the stablecoin bill, which President Trump has urged to be completed by August. The administration's proactive stance on cryptocurrency regulation is part of a broader strategy to address the challenges and opportunities presented by digital assets. By setting clear guidelines and fostering a supportive regulatory environment, the administration aims to position the U.S. as a leader in the global crypto market.