Clarity Act: The U.S. Senate passes it, entering the countdown… or could become a turning point for institutional capital inflows

The U.S. Congress is accelerating the process of passing the “Clear Act,” which will become a watershed in digital asset regulation. Senate Banking Committee Chairman Tim Scott aims to have the bill signed by the President by summer 2026, fueling high market expectations.

The Senate has scheduled committee review within this month, with over 100 industry groups publicly urging legislation. The bill was passed by the House of Representatives in July 2025 with 294 votes in favor and 134 against, but subsequent disagreements over stablecoin regulation, DeFi, and ethical clauses delayed its consideration in the Senate.

The core of the bill is to clarify the “jurisdictional conflicts” between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The issue is that, in the current blurry boundary, banks and companies find it difficult to actively invest in virtual assets domestically.

Clarifying the SEC and CFTC boundaries… eliminating market uncertainty is key

The Clear Act explicitly designates “digital commodities” in digital assets as within the jurisdiction of the CFTC, thereby separating regulatory standards. This measure will serve as a key mechanism to concretize regulations for spot trading, custody, DeFi protocols, and non-custodial developers.

Stablecoin regulation is also included. The bill mandates 1:1 reserves based on highly liquid assets and sets “federal standards” also applicable to state regulators. Senator Cynthia Lummis stated that during the May review, issues related to yield, a major point of contention, have been essentially resolved.

Full support from the executive branch is also noteworthy. Treasury Secretary Scott Bessent, SEC Chairman Paul Atkins, and White House crypto advisor Patrick Witte all support the bill’s passage. This is significant because, unlike before, it indicates that the executive branch and Congress are sharing policy directions.

If the bill passes, “regulatory premiums” will shrink… promoting institutional capital inflows

If the Clear Act is passed by the Senate this summer, the most immediate market change will be a reduction in “regulatory risk premiums.” In the virtual asset market, U.S. regulatory uncertainty has previously been reflected in prices; now, this burden is likely to ease.

On-chain data has also partially reflected market expectations for legislation. During past legislative progress, stablecoin issuance growth of 5-10% was observed, seen as a signal of institutional capital inflow. This indicates that the market has begun to position itself before the regulatory framework is fully established.

Conversely, if it fails to pass during the May review, the situation could change dramatically. Senator Bernie Moreno warned that if the schedule is delayed, “legislation could stall for years.” Once in the 2026 midterm election phase, the yield structures of DeFi and stablecoins are likely to become political focal points.

In fact, on the prediction market Polymarket, the probability of the bill passing in 2026 has dropped from 65% in January to recent 46%, indicating market disappointment.

Ultimately, the Clear Act is not just a simple regulatory overhaul; it is seen as a watershed that could enable formal institutional inflows into the U.S. virtual asset market. Market trends are expected to change significantly depending on the timing and political variables involved.

Article summary by TokenPost.ai

🔎 Market interpretation The U.S. “Clear Act” clarifies the regulatory boundaries between the SEC and CFTC and is seen as a key watershed in eliminating structural uncertainties in the digital asset market. Once passed in the Senate, regulatory risk premiums will shrink, increasing the likelihood of institutional investor capital inflows.

💡 Strategic points The market has partially reflected expectations of the bill’s passage and has observed leading signals such as increased stablecoin issuance. However, delays could escalate political risks and sharply increase market volatility, making timing strategies crucial.

📘 Terminology explanation Clear Act: U.S. legislation that distinguishes digital assets as securities and commodities, clarifying regulatory agencies Digital commodities: cryptocurrencies under CFTC jurisdiction (e.g., Bitcoin) Regulatory premium: additional risk cost reflected in asset prices due to uncertainty

💡 Frequently Asked Questions (FAQ)

Q. Why is the “Clear Act” important to the market? Currently, the regulatory boundaries between the SEC and CFTC are unclear, making it difficult for institutional investors to actively participate. If the bill passes, the regulatory framework will become clearer, potentially promoting institutional capital inflows. Q. Will prices rise immediately after the bill passes? Some expectations are already reflected in the market. However, if the regulatory premium is truly eliminated, the long-term effect could be increased price appreciation driven by institutional inflows. Q. What if the bill is delayed? If the schedule is delayed, political issues could intensify, and legislation might stall for years. This could further exacerbate regulatory uncertainty and become a factor increasing market volatility.

TP AI note: This summary is generated using a language model based on TokenPost.ai. It may omit key points from the original or be inconsistent with facts.