US Clarity Act gains momentum toward passage

TLDR

The US CLARITY Act, a major crypto market structure bill, now has visible political momentum, but key details and final votes are still pending.

1. The House has already passed the Digital Asset Market Clarity Act, and senior officials, including the CFTC chair and President Trump, now signal that Senate passage could come within months.
2. The bill would formalize a split between SEC and CFTC oversight, create registration paths for exchanges, and tighten rules around stablecoins and DeFi, aiming to end regulation by enforcement.
3. A fight over whether stablecoins can pay yield remains the main roadblock, so progress hinges on a late?February compromise and a narrow legislative window before the election calendar crowds it out.

Deep Dive

1. What The Clarity Act Actually Does

The CLARITY Act is the Digital Asset Market Clarity Act, a comprehensive US crypto market structure bill that the House already passed last July under that label. It would codify how digital assets are classified and who regulates what, rather than relying on court fights and the Howey test alone.

Reporting on the bill explains that it would formally split oversight so the SEC regulates digital asset securities while the CFTC oversees digital commodities like Bitcoin and Ethereum, with exchanges given 180 days to obtain provisional registration and joint SEC CFTC rulemaking over the following 18 months for complex areas such as margin and mixed transactions.[^1]

CFTC chair Michael Selig has described the Clarity Act as being on the cusp of final approval, noting House passage, a narrow Senate Agriculture Committee advance, and expectations it could reach the President within months.[^2]

2. How It Would Reshape Crypto Markets

By defining when a token is a security versus a commodity, the bill aims to replace ad hoc enforcement with predictable rules for issuers and trading venues, potentially lifting what some analysts call a regulatory discount on US?traded crypto.[^2]

Exchanges and brokers would get a clear registration track under the CFTC for spot markets in digital commodities, which could make it easier for major institutions and Wall Street firms to launch products like more ETFs and structured crypto products.[^1] At the same time, the framework is tougher on some areas: drafts contemplate stricter DeFi compliance perimeters and limits on how stablecoins can be used for yield or staking, which could constrain existing business models.

3. Remaining Hurdles And What To Watch

The main sticking point now is stablecoin yield. Banks want the existing ban on issuers paying yield extended to platforms, while crypto firms argue that banning rewards on stablecoin balances would hurt users and innovation; Coinbase has already withdrawn support over this issue.[^3][^4]

The White House has set a late?February deadline for banks and crypto firms to reach a stablecoin compromise, and President Trump has publicly said the market?structure bill, tied to S. 3755 H.R. 3633, is close to passing.[^1][^4] Ripple CEO Brad Garlinghouse recently put the odds of the CLARITY Act being signed by the end of April at around 80 percent, highlighting resumed negotiations this week.[^5]

Even if Congress passes the bill, the real impact will phase in over time through rulemaking and compliance windows, not overnight. Key watchpoints are: Senate Banking vs Agriculture Committee reconciliation, any White House announcement on a stablecoin yield deal, and final floor votes in the Senate.

Conclusion

The CLARITY Acts momentum is real, backed by House passage, committee advances, and public signals from the administration and regulators. For crypto users and builders, its passage would trade todays legal uncertainty for a more formal but stricter rulebook, especially around stablecoins and DeFi. The next few months, and specifically a compromise on stablecoin yields, will determine whether that shift actually happens in this cycle or gets pushed back again.

[^1]: Crypto market structure bill overview [^2]: CFTC chair on Clarity Act progress [^3]: Stablecoin yield standoff and CLARITY bill [^4]: Yahoo summary of Clarity Act and oversight shift [^5]: Garlinghouse 80 percent passage odds