Not long ago, I was analyzing the regulatory changes that the crypto market in the U.S. is going through, and honestly, it is one of the most significant legislative moves we’ve seen in years. If you’re not closely following the CLARITY Act, you probably should start, because this will impact practically everything we do in the ecosystem.

To understand where we’re coming from: for years, the market basically operated in a gray area. The SEC and the CFTC were constantly fighting over who had authority over what. It was a disaster for exchanges and developers. The CLARITY Act was created precisely to address that, establishing a legal framework that the securities laws of 1930 simply could not cover.

What’s interesting about the CLARITY Act is how it proposes to divide power. Instead of letting both agencies keep fighting, it introduces what they call a “functional test.” Basically, it says: if an asset is sufficiently decentralized or is mainly used for functions on the blockchain, it falls under the CFTC as a digital commodity. If it looks more like a traditional investment instrument, the SEC oversees it. And here’s the key part: there is a “decentralization access point,” where projects can transition from one state to another as they mature. That’s quite different from what we had before.

In practical terms, the law imposes quite a few changes. Digital asset issuers now have to disclose information about their code, tokenomics, and distribution. It’s a direct response to the information asymmetry that has plagued the market. And in custody, this is serious: exchanges are prohibited from mixing customer funds with corporate funds. It was a painful lesson we learned from the collapses a few years ago.

Now, where things got complicated is with DeFi. The initial drafts suggested that any protocol with a “control person” might need to register. That scared a lot of people. But in recent Senate discussions, the debate focused more on whether developers should be held responsible for how their open-source code is used. Depending on how that is resolved, it could mean major changes in how DEXs and lending protocols work.

As for the current status: the House passed this in late 2025, but the Senate got stuck earlier this year. There are several issues blocked. Some lawmakers want stricter ethical rules for regulators who hold crypto. Others are negotiating how stablecoins can pay yield without being classified as banking products. And several industry leaders withdrew support because they feel the Senate’s version becomes too restrictive for small developers.

While all of this gets resolved, the global market is viewing it as a potential standard. If the U.S. manages to establish a clear framework for digital assets, other countries will likely use it as a reference for their own policies.

The reality is that the CLARITY Act represents an important transition. We move from a regulatory “Wild West” to something more structured. Some fear it will stifle innovation; others believe it’s necessary for mass adoption and institutional integration. Personally, I think a clear federal framework is inevitable—the only question is just how balanced it ends up being. Projections suggest that if an agreement is reached, it could be implemented by the end of this year or in early 2027.