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"During the summer, lawmakers shook up the crypto market by approving the GENIUS Act, a bill designed to bring order to the stablecoin market. As a result, ETH jumped more than 50%, and Solana went on a tear shortly afterward. That rally left traders asking one thing: what could spark the next wave of explosive rallies across the broader crypto market?
Many believe the answer lies in the CLARITY Act, which sets clear guidelines for market structure. That’s why today, we’ll break down what the CLARITY Act is all about, when we can expect it to be passed into law, and why altcoins could be more dependent on it than you might think."
~ Coin Bureau
The video discusses the CLARITY Act, a market structure bill in the US Congress designed to bring regulatory clarity to the crypto space by defining which regulator—the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC)—should oversee various digital assets. The act defines digital securities, digital commodities, and introduces "investment contract assets," which allows tokens to switch from being SEC-regulated (if centralized) to CFTC-regulated (if decentralized and mature). This framework aims to provide investor protection by requiring projects to disclose financials and risks, and allows projects to raise up to $75 million annually without SEC registration if they are expected to decentralize within four years. The act builds on previous legislative efforts and was passed by the House of Representatives in July 2025, following the passage of the Genius Act, but still requires approval from the Senate.
The passing of the CLARITY Act faces political delays and competition from other bills, such as the Responsible Financial Innovation Act (RFIA), with key senators expressing caution about rushing the process. There is a wide range of predictions for when the act will be signed into law, ranging from late 2025 to 2026, and once passed, the rulemaking process by the SEC and CFTC could take several years before full legal effect. If the CLARITY Act fails, the immediate consequence would be heightened market uncertainty, which could trigger a market crash. However, the video notes that both the SEC and CFTC have been working on alternative regulatory structures to provide clarity. The video also raises the concern that the act could be a "bearish" development by paving the way for traditional finance ("TradeFi") institutions to become the new gatekeepers of the crypto ecosystem, potentially undermining the decentralized ethos of crypto, but ultimately concludes that clear regulation is essential for the industry's innovation and survival.
0:00 Intro
1:04 What is the CLARITY Act
5:45 CLARITY Act Progress So Far
7:54 When Could The CLARITY Act Be Passed
10:57 What Happens if the CLARITY Act Doesn’t Pass?
14:13 Potential Downsides of the CLARITY Act
Source - Coin Bureau YouTube: https://www.youtube.com/watch?v=qQIvYw1mNKg
Disclaimer: This video is provided for informational purposes only, and not offered or intended to be used as legal, tax, investment, financial, or any other advice.
