CLARITY Act Could Reshape Crypto Valuations Like Treasury Markets

Washington lawmakers are defining crypto's regulatory future with two landmark bills. The CLARITY Act establishes clear digital asset definitions and divides oversight between the SEC and CFTC. Meanwhile, the GENIUS Act sets national standards for stablecoin issuance—the first federal crypto law in US history.

Bitwise CIO Matt Hougan observes these developments may introduce bond-style valuation dynamics to crypto markets. "The CLARITY Act and generic listing standards for crypto ETPs will create an 'on-the-run/off-the-run' valuation element," Hougan noted. Market data already shows large-cap tokens outperforming smaller counterparts year-to-date.

Institutional investors are reevaluating how digital assets will be priced and traded under the emerging framework. The legislation marks a pivotal shift as crypto enters a new phase of regulatory clarity and institutional adoption.