🔥 President Trump: “I will sign the CLARITY Act as soon as it reaches my desk.” Senator Tim Scott: “We are making real progress.”
✨ A critical turning point has been reached for the CLARITY Act, the comprehensive regulation that the cryptocurrency sector in the US has been waiting for for years. While President Donald Trump has pledged to sign the law “immediately” as soon as it reaches his desk, Senate Banking Committee Chairman Tim Scott announced that “real progress” is being made in Congress. With the bipartisan agreement reached on stablecoin yields, the biggest obstacle facing the sector has been removed.
🔹 What is the CLARITY Act?
✨ Officially known as the Digital Asset Market Clarity Act 2025 (H.R. 3633), it was introduced by the House Financial Services and Agriculture Committees in June 2025. ✨ The law clarifies the division of authority between the SEC and the CFTC, clarifying which digital assets are considered securities and which are considered commodities. ✨ Major cryptocurrencies that already have spot ETFs, such as Bitcoin, Ethereum, XRP, and Solana, will be recognized as digital commodities under the law.
🔹 Historic Commitment from Trump
✨ President Trump addressed the largest holders of TRUMP tokens at a private event held at Mar-a-Lago on April 25.
✨ In this speech, Trump emphasized that he would not allow banks to obstruct the law and stated that he would “immediately sign” it if it passed Congress.
✨ Trump also stated that crypto has “become mainstream” and that the CLARITY Act is vital to keeping the sector in the U.S.
🔹 Tim Scott: “We’re at the red line”
✨ Senate Banking Committee Chairman Tim Scott (R-S.C.) confirmed in a statement that they are approaching a critical threshold in crypto market structure legislation, saying, “We are making real progress.” ✨ Scott told Fox Business that they aim to hold a committee hearing (markup) in May and bring the bill to the Senate floor in June or July. ✨ These statements were interpreted by the markets as a strong signal that the biggest hurdle in front of the bill has been overcome.
🔹 Stablecoin Compromise: The Unlocking Agreement
✨ Senators Thom Tillis (R-N.C.) and Angela Alsobrooks (D-Md.) released a compromise text on stablecoin yields in early May. ✨ The new provision prohibits crypto companies from paying users interest or yield simply for holding stablecoins. Instead, reward programs based on “real activity,” such as spending or trading, are permitted. ✨ This balance allows crypto platforms to continue offering rewards to users while addressing banks’ concerns about deposit flight.
🔹 Full Support from the Industry
✨ Coinbase CEO Brian Armstrong immediately called for a "Mark it up" vote on social media following the release of the agreement.
✨ Circle Strategy Director Dante Disparte described the agreement as "meaningful progress in the CLARITY Act negotiations."
✨ Blockchain Association CEO Summer Mersinger stated, "Every day without a clear legal framework is an invitation for the best talent, capital, and innovative companies to go elsewhere."
✨ More than 120 companies sent a joint letter to the Senate Banking Committee demanding an immediate committee vote.
🔹 Markets Respond with a Rally
✨ The progress on the CLARITY Act led to a strong rally in the crypto markets. Bitcoin surpassed $80,000 on May 4th, reaching its highest level since January. ✨ Stablecoin issuer Circle (CRCL) gained 18%, while crypto exchange Coinbase (COIN) rose 7%.
✨ On the forecasting platform Polymarket, the probability of the CLARITY Act becoming law in 2026 rose above 64%, reaching its highest level in recent weeks.
🔹 May: “Now or Never”
✨ Senator Bernie Moreno (R-Ohio) warned that the law must pass by May, otherwise its chances of passing after the November midterm elections are very low. ✨ Senator Cynthia Lummis emphasized that the current House-Senate-White House alignment is a “rare opportunity in Washington” and may not be seized again until 2030.
🔹 Impacts of the CLARITY Act on the Sector
✨ If the law passes, the entry of institutional capital into the crypto markets, which has been sidelined for years due to regulatory uncertainty, will accelerate. ✨ Crypto exchanges in the US will be able to be bolder in token listings, and DeFi protocols will not have to block American users. ✨ Stablecoin use will become legal, leading to a boom in cross-border payments and trade. ✨ Banks will be able to offer crypto custody services, and new institutional products beyond spot ETFs can be launched.
💫 Wise Saying: “Uncertainty is a foggy sea; the compass comes with the law. He who finds his compass first, arrives first at the harbor.”
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