Hotspot Analysis | CLARITY Act

(1) What is the CLARITY Act

Simply put, it’s a piece of legislation that lays down rules for the US “Bi” crypto circle.

In the past, the US has never been clear about the regulatory boundaries for crypto. Before projects could even figure out what would be considered a violation, the SEC would come to impose fines—leaving exchanges and project teams all on edge, not daring to grow, and unsure how to operate.

What the CLARITY Act is meant to solve is to clarify what the SEC and the CFTC each oversee, so the industry knows what it can do and what it can’t do.

(2) Latest developments

Previously, the House version passed. Now the bill has moved to the Senate, and both sides are still modifying and negotiating.

One of the biggest points of disagreement is the issue of officials’ conflicts of interest. The Democratic “D” wants to restrict Trump and his family, during their time in office, from profiting through crypto projects such as Meme Bi and stable Bi.

Now Trump has backed down and agreed to include restrictions to a certain extent, which means the “stone” blocking the bill is being moved away.

But right now, this is only progress in negotiations—it doesn’t mean the bill has already been passed.

After the new version text comes out, it still needs to be submitted for a full vote by the entire Senate. If, after the Senate passes it, the content is different from the House version, it must be sent back to the House for confirmation—only then does Trump sign it.

(3) What are the benefits of CLARITY being passed

For the “Bi” circle, the biggest benefit is that the rules are finally clear.

There will be clearer standards for which projects count as securities and which count as commodities, who regulates what, how exchanges list “Bi,” and how project teams issue “Bi.” In the future, when the SEC wants to punish a project, it also can’t keep fining first and explaining later; at least the industry will know where the red lines are.

With clearer rules, project teams are also more willing to conduct business in the US, and Wall Street institutions are more willing to enter the crypto market too—because what everyone fears most is not regulation itself, but not knowing when regulation might suddenly come knocking.

In the long run, this should benefit more capital, companies, and on-chain business entering the US market. It’s generally favorable for the mainstream-coin, compliant-exchange, stablecoin, and RWA tracks.

But it’s not the kind of good news that makes prices explode immediately just because the bill passes.

For now, the focus is on two signals:

when the new revised merged bill will be published, and when the Senate will schedule a full Senate vote.

If these two steps move forward smoothly, the CLARITY Act can be said to have truly reached the final sprint stage.