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The crypto market is bracing for what could be its biggest structural shift to date as the CLARITY Act nears a high-stakes markup by the Senate committee.
Industry leaders and researchers are describing the legislation as the definitive catalyst that could transform cryptocurrency from a speculative experiment into a core pillar of U.S. financial infrastructure.
Formally known as the Digital Asset Market Clarity Act, the bill seeks to resolve years of regulatory wars by establishing a clear jurisdictional boundary between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Under the proposed framework, digital assets would be classified as “digital commodities” under the CFTC’s oversight if they meet specific decentralization thresholds, while those dependent on central teams would remain under the SEC’s purview as securities.
Alex Thorn, Head of Firmwide Research at Galaxy Digital, has likened the bill to the Securities Act of 1933, suggesting it provides the legal bedrock necessary for digital assets to integrate directly into capital markets. However, Thorn warns that the window for action is rapidly closing, noting that its chances in 2026 are low if the bill does not clear the committee by early May.
 
The executive cited a crowded Senate schedule and the approaching 2026 election cycle. While he assigns a 50% probability to its passage, he remains wary of the bill’s potential for expanding financial surveillance, which he suggests could be the most significant since the USA PATRIOT Act.
The momentum behind the bill was further supported by Coinbase CEO Brian Armstrong, who recently described the latest draft as “stronger than ever.”
Speaking from the Senate office building, Armstrong highlighted successful bipartisan compromises on issues such as stablecoin rewards and DeFi oversight. “I don’t think it’s ever been in a stronger position, a more bipartisan position,” Armstrong said, crediting the advocacy of millions of supporters for breaking the legislative deadlock.
Meanwhile, the broader crypto market is neutral, with a total market capitalization of $2.66 trillion at press time. While the market is in the current “Bitcoin Season,” analysts believe the finalization of the CLARITY Act could unlock the next leg of institutional adoption.