USDT and the Future of Crypto Regulation: What the CLARITY Act Means for Digital Assets

Coinbase’s lobbying arm, 'Stand With Crypto,' along with 65 other prominent crypto groups, is pushing U.S. House lawmakers to accelerate the passage of the Digital Asset Market Clarity Act (CLARITY Act). This collective effort highlights the urgent need for regulatory clarity to ensure the U.S. remains a leader in the global cryptocurrency market. The CLARITY Act aims to clearly define regulatory authority between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), providing much-needed structure for the industry. As of July 2025, this development could significantly impact the valuation and adoption of stablecoins like USDT, making it a critical moment for investors. Regulatory clarity often acts as a catalyst for institutional investment, potentially driving demand for USDT and other digital assets. With the crypto industry at a pivotal juncture, the passage of the CLARITY Act could mark the beginning of a new era of growth and stability for cryptocurrencies in the U.S. and beyond.

Coinbase Leads DC Crypto Lobby — Best Crypto to Buy Before CLARITY Act Passes

Coinbase’s lobbying arm, 'Stand With Crypto,' alongside 65 other prominent crypto groups, is urging U.S. House lawmakers to expedite the passage of the Digital Asset Market Clarity Act (CLARITY Act). The industry's push underscores the critical need for regulatory clarity to maintain America's leadership in the global crypto landscape.

The CLARITY Act seeks to delineate regulatory authority between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). It proposes CFTC oversight for most cryptocurrencies as digital commodities, while the SEC WOULD handle crypto-related securities. Advocates argue that the current regulatory vacuum stifles innovation and drives business offshore.

With 'Crypto Week' commencing on July 14th, the House's consideration of the CLARITY Act could mark a pivotal moment. Passage would likely benefit major cryptocurrencies like $BTC and $ETH, while $XRP could gain from clarified legal status. Stablecoins such as $USDT and $USDC may also see regulatory clarity, particularly with the parallel advancement of the GENIUS Act.

Despite industry optimism, the CLARITY Act faces headwinds. Senate Democrats remain a potential obstacle, reflecting broader political tensions around crypto regulation. The outcome could shape the trajectory of digital asset markets for years to come.

Tether and Binance Absent from EU's MiCA-Approved Crypto Firms

The European Union has greenlit 53 cryptocurrency firms under its Markets in Crypto-Assets (MiCA) framework, marking a watershed moment for regulatory clarity in the region. Notable omissions include industry giants Tether, issuer of the USDT stablecoin, and exchange platform Binance—raising questions about their compliance readiness.

Germany and the Netherlands emerge as jurisdictional leaders, hosting 23 of the 39 approved crypto-asset service providers. Stablecoin approvals skew toward France and Germany, with Circle's EU policy head Patrick Hansen confirming all authorized firms meet stringent standards for consumer protection and financial transparency.

The absence of Tether—which commands 68% of stablecoin market share—signals potential turbulence for traders reliant on USDT for eurozone transactions. Meanwhile, approved exchanges like Coinbase and Kraken gain competitive advantage through passporting rights across 30 EEA countries.

Tether Expands Security Infrastructure with Strategic Crystal Intelligence Investment

Tether has made a strategic investment in Crystal Intelligence, a leading blockchain analytics firm, as part of its broader initiative to enhance transparency and combat the misuse of stablecoins in illicit activities. The MOVE comes amid a surge in crypto-related crime, with the FBI reporting $9.3 billion in losses from cryptocurrency scams in 2024 alone—a 66% increase year-over-year.

The stablecoin issuer has already frozen over $2.7 billion in USDT tied to criminal activity, collaborating with 255 law enforcement agencies across 55 jurisdictions, including the FBI and US Secret Service. The partnership with Crystal Intelligence will further bolster Tether's compliance framework, providing advanced monitoring tools for real-time tracking and enforcement.