#Gate广场五月交易分享 CLARITY Act Approaching: The Future of the Crypto Market Becomes Clear, and Lawmakers’ Wallets Grow Thicker

As debates over the legal definition of cryptocurrencies continue, Washington politicians have already cast their votes with their wallets.

1. The “Historic Trial” of the Crypto Circle on May 14, the U.S. Senate’s “Banking, Housing, and Urban Affairs Committee” will hold a key review of the “Digital Asset Market Transparency Act of 2025” (Digital Asset Market Clarity Act, abbreviated CLARITY Act).

01: Why Is the CLARITY Act So Important?
This bill, numbered HR3633, is regarded as the most decisive and systematic regulatory legislation in U.S. crypto history. Its core is to “divide the regulatory cake” by clarifying regulatory boundaries, resolving the long-standing jurisdiction dispute between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The bill proposes an innovative “Mature Blockchain Test” to determine when tokens shift from potential securities to digital commodities. Once a project reaches sufficient decentralization—such as Bitcoin, Ethereum, and future tokens that meet the “decentralization test”—it falls under CFTC jurisdiction and enjoys more lenient regulation; otherwise, it is considered an “investment contract asset” under SEC oversight.
Additionally, the CLARITY Act involves a highly industry-focused topic—the yield mechanism of stablecoins. The crypto industry favors allowing stablecoins to generate yields to enhance market competitiveness; however, banks and regulators worry this could threaten financial stability, leading to regulatory disagreements. On May 2, 2026, bipartisan parties reached a compromise: stablecoins used for active financial activities (like loans or other productive uses) can generate yields, but idle stablecoins in accounts are prohibited from earning returns. This means stablecoins cannot be used like bank deposits or high-yield savings products. Every clause and punctuation of the CLARITY Act directly influences the trillions of dollars in the crypto market—potentially causing a surge or crash. It is the first bill in U.S. history to genuinely attempt to establish a “legal foundation” for the crypto market. Once passed, it signifies the end of the “wild west” era of cryptocurrencies, integrating them into America’s financial hegemony. (Following the 2025 U.S. “Guidance and Establishment of the Digital Dollar Stablecoin National Innovation Act” (GENIUS Act), which first established a federal regulatory framework for stablecoins.)

02: Why Has the CLARITY Act’s Review Been So Rocky?
Initially proposed by Republican Congressman French Hill of Arkansas on May 29, 2025, the CLARITY Act was passed in the House of Representatives on July 17, 2025, with a vote of 294 to 134, progressing smoothly. However, once it entered the Senate, it faced major resistance, with ongoing disputes over core provisions between both parties and industry, causing legislative deadlock. In January 2026, major crypto exchange giant Coinb withdrew support, and lobbying groups worried about traditional financial interests being harmed, leading the Senate committee to cancel the scheduled review. By May 2, 2026, bipartisan agreement on stablecoin yield issues broke the months-long deadlock. Moving forward, after the Senate Banking Committee reviews, amends, and votes on the bill starting May 14, if approved, the bill will merge with the “Digital Commodity Intermediary Act” passed by the Senate Agriculture Committee in January 2026 (which grants CFTC oversight over spot digital assets), forming a final version to be submitted to the full Senate for debate and voting. Then, it must go through negotiations between the House and Senate and be signed by the President.
Senate Banking Committee Chair Tim Scott plans to complete this review within May, aiming for a Senate floor vote in June or July, aligning with broader White House initiatives. Former President Trump has repeatedly called for the U.S. to become the “world’s crypto capital” by 2026, and the CLARITY Act is the most likely legislative tool to turn that slogan into policy.

03: The Trump Factor Behind the CLARITY Act
During the Senate Agriculture Committee’s review, Democrats proposed amendments requiring strict “political ethics clauses” to prevent the President, Vice President, legislators, and other federal officials from engaging in certain financial transactions involving digital assets. However, these amendments were ultimately not included. The targeted individuals were precisely the President himself.
The White House responded by rejecting restrictions tailored to specific politicians, favoring general behavioral standards applicable to all. They even set the bill’s deadline for July 4, 2026, America’s Independence Day, framing it as a political achievement for the nation’s 250th anniversary—very much in Trump’s style.

二、“Transparent Black Box”: Capitol Trades Reveals Congressional Crypto Frenzy
Behind this seemingly solemn legislative moment lies a starkly ironic reality: the very lawmakers who loudly advocate “protecting investors” and “preventing financial risks” at hearings are secretly trading cryptocurrencies wildly in their personal accounts.
Today, we will use the independent political transaction tracking databases Capitol Trades and Unusual Whales Congressional Tracker to expose the hidden crypto “dark pools” on Capitol Hill, revealing how policymakers “precisely time” their trades to profit from policy developments before they are announced.
These platforms track financial asset transactions of members of Congress and their families—including stocks, cryptocurrencies, bonds, private equity, options, and more—and visualize the data in multiple dimensions. By correlating lawmakers’ backgrounds, lobbying expenditures, and trading delays, they estimate annual returns and reveal insider trading patterns.
Most of this core data does not come from exchange backends but from mandatory disclosures mandated by the 2012 “Stop Trading on Congressional Knowledge Act” (STOCK Act). This law requires members of Congress and their relatives to report transactions within 30-45 days of occurrence.
01: Capitol Hill Crypto Trading Map
According to Capitol Trades, over the past three years, U.S. lawmakers and their families have disclosed 64 crypto trades (excluding stock or ETF purchases of crypto-related companies). These transactions range from $1,000 to $250k per trade, totaling over $3 million. In asset preferences, Bitcoin (BTC) and Ethereum (ETH) dominate, accounting for over 60%. Lawmakers’ interests also extend into high-volatility assets like Litecoin (LTC), Solana (SOL), Ripple (XRP), and even meme coins like Ski Mask Dog, indicating strong speculative tendencies. These trades are concentrated among a few “star traders,” with Republican lawmakers being steadfast crypto buyers, while Democrats tend to indirectly participate via stocks of crypto-related companies like Coinb (COIN). Notably, Republican Rep. Mike Collins, Brandon Gill, Guy Reschenthaler, and Democrat Shri Thanedar account for most crypto trades.
02: “Insider Time Lag” Arbitrage Signatures
When correlating these trades with the legislative timeline of crypto bills like CLARITY, it becomes clear: many lawmakers made precise buy or sell decisions during sensitive windows before key votes or major positive news, exploiting the “information lag” for outsized gains. Brandon Gill’s disclosures show heavy accumulation from mid-2025 to late 2025, especially around the bill’s passage in the House and the signing of the GENIUS Act by Trump, which boosted Bitcoin prices. As an insider participant, he bet heavily on the bill’s passage with substantial Bitcoin purchases of $100k to $250k or more, just before the bill’s success. Similarly, “Meme Coin” trader Mike Collins bought Ethereum at high prices in early 2025, just weeks before ETH hit a record high of $4,953 on August 24. Other lawmakers, like Byron Donalds and Dave McCormick, also made strategic trades—Donald’s large Bitcoin purchase in December 2025 coincided with the bill’s initial legislative stages, while McCormick, a Senate Banking Committee member, bought multiple Bitcoin ETFs, totaling around $1.6 million, leveraging his Wall Street background.
These data demonstrate that Washington’s crypto regulation system is fundamentally flawed—what’s called “clarity” in regulation is merely a broader, more transparent fast lane for power arbitrage.