BREAKING: U.S. House Passes CLARITY Act – Crypto Markets Brace for Policy Shockwaves

The U.S. House just dropped a regulatory bombshell—passing the CLARITY Act with implications that could reshape crypto’s legal landscape overnight. Here’s what’s at stake.

Decoding the fallout

Lawmakers claim the bill brings ‘transparency’ to digital assets, but industry insiders whisper it’s a Trojan horse for tighter controls. Expect heated Senate debates as crypto lobbyists mobilize—Wall Street’s already pricing in volatility.

Between the lines

While the act dodges an outright crackdown, its vague language on stablecoins and DeFi leaves room for aggressive interpretation. SEC Chair’s recent ‘all tokens are securities’ rhetoric suggests regulators will wield this as a blunt instrument.

The cynical take

Another ‘landmark’ financial bill passed by politicians who still think Bitcoin is a type of Pokémon card—just in time for election season fundraising from both crypto PACs and anti-crypto banks. How convenient.

Key Takeaway

The CLARITY Act heads to the Senate for consideration before advancing it to Trump’s desk. The bill aims to offer a comprehensive framework for the crypto sector. 

The crypto week has been a successful and historic win for the industry.

On the 17th July, the U.S. House cleared the stablecoin bill, the GENIUS Act to for Trump’s approval, while the broader market structure bill, the CLARITY Act, advanced to the Senate. 

Both the bills enjoyed massive bipartisan support, with the CLARITY Act garnering 294 ‘YES’ votes against 134 ‘No.’

Compared to its predecessor, the FIT21 passed last year, the CLARITY Act was voted favorably by 78 Democrats, more than half the expected number.

But what rules does the bill contain, and how will it impact the markets? 

Unpacking the CLARITY Act

The bill, first introduced in May 2025, aims to define digital assets clearly, whether they are securities (investment contracts) or commodities. 

Additionally, it proposes that the SEC (Securities and Exchange Commission) will handle crypto assets deemed ‘securities.’ 

On the other hand, the CFTC (Commodity Futures Trading Commission) will handle decentralized crypto assets and trading. 

Other provisions include the exemption of DeFi and early-stage crypto projects from oversight on condition that they submit proper disclosures where necessary. 

Supporters of the bill have hailed it as a great shift from the Biden-era enforcement actions, where crypto firms were sued because there was no clarity on token classification. 

Additionally, retail users will benefit from more protection due to enhanced disclosure requirements for the brokers and projects. 

Besides, the bill will spur innovation and put the U.S. on par with other regions with clear rules like the E.U., Singapore, and the UAE. House Speaker Mike Johnson summarized it as, ‘

“Make crypto a Core pillar of the U.S. economy and ensure America remains the global leader in this dynamic industry.”

For policy watchers at MacMillan, the bill will ‘shape the U.S.’s future role in the global digital asset landscape.’ 

Criticism of the bill

But critics have also pointed out several issues with the bill. 

Last month, former CTFC chair Timothy Massad told the House that the dual oversight model could lead to more confusion than clarity in a fast-moving sector. 

A similar reservation was shared by the consumer protection agency, Americans for Financial Reform (AFR).

It slammed the bill as a MOVE from ‘bad to worse’ when compared to FIT21, citing ambiguity in DeFi oversight. 

“The CLARITY Act has taken the crypto industry’s deregulatory agenda from bad to worse.”

AFR added,

“Crypto investors on DeFi platforms will largely be left to fend for themselves. It also means that DeFi —already a space filled with theft, hacks, and scams– will be an incubator for even more predatory and scammy activity, which can bleed over into more centralized exchanges”

The bill will be considered in the Senate before submission to TRUMP for final approval. It remains to be seen whether it will be cleared by Trump’s September deadline.