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The US is closer than ever to passing its first comprehensive crypto market structure law, but the CLARITY Act still faces an uncertain path.In May, the Digital Asset Market Clarity Act cleared the Senate Banking Committee and began moving toward a possible floor vote. If passed, it would create a broad new US framework for digital assets, including clearer roles for federal agencies.The bill could also reshape how tokens are classified, how exchanges register with regulators, how DeFi developers are treated, and whether financial institutions feel comfortable building on-chain products in the US.Senate Banking Chair Tim Scott, who helped draft the bill, <a href="https://www.banking.senate.gov/newsroom/majority/what-they-are-saying-industry-leaders-praise-chairman-scott-senate-banking-committee-on-advancing-bipartisan-clarity-act" rel="noopener noreferrer nofollow">said</a> the CLARITY Act would bring digital assets “into the sunlight with clear rules, stronger safeguards, and better tools to stop bad actors.”<img src="https://academy-public.coinmarketcap.com/optimized-uploads/215220c0196646358de5b1ba831884a4.png">Lawmakers may soon pass the first major US market structure bill. Source: CoinMarketCap<h2 id="when-is-the-clarity-act-expected-to-pass">When Is the CLARITY Act Expected to Pass?</h2>The bill still has to clear the Senate floor and survive fights over ethics rules and DeFi protections. With the August recess and midterm season closing in, crypto’s biggest policy win is far from locked in.“The political environment is getting worse for the CLARITY Act,” Jaret Seiberg, managing director at TD Cowen’s Washington Research Group, <a href="https://fr.tradingview.com/news/coinpedia:ad2694932094b:0-td-cowen-analyst-warns-clarity-act-may-not-pass-this-year/" rel="noopener noreferrer nofollow">said</a> in a note. “It is why we remain pessimistic that CLARITY will become law this year.”Timing is one of the bill’s biggest risks. If it slips past the August recess, lawmakers could lose the narrow window created by Republican control of Congress and a more crypto-friendly White House.On Monday, Galaxy Digital researchers cut the bill’s odds of passing before year-end to approximately 60% from 75%, <a href="https://www.tradingview.com/news/cointelegraph:43950dae5094b:0-galaxy-drops-clarity-act-odds-to-60-as-time-is-running-out/" rel="noopener noreferrer nofollow">citing</a> the narrowing window for a Senate vote.Sen. Cynthia Lummis, one of the bill’s Republican backers, has warned that failure this year could delay crypto market structure legislation for years.“This is our last chance to pass the CLARITY Act until at least 2030,” Lummis <a href="https://x.com/SenLummis/status/2042632446798369090?lang=en" rel="noopener noreferrer nofollow">said</a> in a post on X. “We can’t afford to surrender America’s financial future.”<img src="https://academy-public.coinmarketcap.com/optimized-uploads/876d2f5ef2f547248c1c08e1da84aeb1.png">Galaxy Digital puts the odds of CLARITY passing this year at 60%. Source: CoinMarketCap<h2 id="what-is-the-clarity-act">What Is the CLARITY Act?</h2>The CLARITY Act aims to make it easier to decide whether a digital asset qualifies as a security or a commodity. That distinction helps determine which regulators oversee its markets.Under the bill, the Securities and Exchange Commission (SEC) would retain authority over digital assets that closely resemble investment contracts. The Commodity Futures Trading Commission (CFTC) would oversee digital commodities and their spot markets.Banking regulators would continue to oversee crypto’s links to traditional finance, including stablecoins and custody.In practice, this would move the US away from regulation by enforcement and toward a rulebook designed specifically for crypto markets.For founders, this could create a path from early token sales to wider market trading. For exchanges, the bill could set clearer rules for listings, registration, and disclosures, making it easier to serve US users and institutions.<h2 id="how-will-the-clarity-act-affect-crypto">How Will the CLARITY Act Affect Crypto?</h2>The bill has especially important implications for altcoins.Bitcoin (<a href="https://coinmarketcap.com/currencies/bitcoin/" rel="noopener noreferrer nofollow">BTC</a>) is already widely treated as a commodity, and Ether (<a href="https://coinmarketcap.com/currencies/ethereum/" rel="noopener noreferrer nofollow">ETH</a>) has also gained more acceptance as a commodity-like asset. But most other tokens remain in a gray area, especially those tied to active teams, foundations, or early-stage networks.The CLARITY Act could reduce that uncertainty. Some network tokens could fall outside securities rules if they meet the bill’s standards. Tokens tied to active teams or offering a share in financial upside could still be treated as securities.The latest draft also includes protections for some non-custodial developers and decentralized protocols. That could be a major win for DeFi infrastructure, wallets, and open-source projects.JPMorgan analysts have <a href="https://finance.yahoo.com/news/jpmorgan-identifies-8-clarity-act-190019335.html" rel="noopener noreferrer nofollow">said</a> that passage of the CLARITY Act could serve as a “positive catalyst” for crypto markets in the second half of the year, with the potential to “reshape market structure” for the better.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/0abcd517111549b881e377a80613e82d.png">JPMorgan says the bill could be a positive catalyst for crypto. Source: CoinMarketCap<h2 id="better-days-ahead">Better Days Ahead?</h2>If passed, the CLARITY Act would become the most significant US crypto market structure law to date. It would replace years of case-by-case enforcement with clearer rules for tokens, exchanges, DeFi, stablecoins, disclosures, and market oversight.The question now is whether lawmakers can settle the remaining fights and give crypto a Senate vote before the political calendar closes in.“The window is open,” Ji Hun Kim, CEO of the Crypto Council for Innovation, <a href="https://www.coindesk.com/opinion/2026/05/27/a-bipartisan-bridge-to-the-future-why-the-senate-must-finish-the-job-on-digital-assets" rel="noopener noreferrer nofollow">wrote</a> in a CoinDesk opinion piece. “The only question is whether we will close it on our terms.”

The CLARITY Act Is Close: What Happens if Crypto’s Biggest US Bill Passes?

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