As the United States gears up for what lawmakers are calling “Crypto Week,” a strong push is coming from major crypto organizations and companies urging Congress to pass the Digital Asset Market Clarity Act, widely known as the CLARITY Act. Led by Coinbase’s lobbying arm, Stand With Crypto, and supported by 65 crypto advocacy groups and firms, the effort aims to secure a clearer and more favourable regulatory environment for digital assets in the US.
With mounting pressure from international competition and growing concerns over vague rules, the crypto industry believes this bill could be a game-changer for innovation and long-term growth.
A Clear Push for Clear Rules
In a letter sent to US House lawmakers, top crypto firms including OpenSea and Dapper Labs signed off on an urgent call to action: pass the CLARITY Act.
The letter emphasized how uncertainty in US crypto regulation is harming innovation and causing businesses and talent to move overseas. The industry warns that the US is at risk of falling behind in global crypto leadership unless swift action is taken.
“The U.S. crypto industry needs market structure, clear rules of the road to continue innovating,” the letter stated.
The CLARITY Act is designed to define the roles of two major regulatory bodies, the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). Under the bill, the CFTC would take on primary oversight of digital assets, while the SEC would retain control over crypto-related securities. This division aims to reduce confusion and give the industry the regulatory clarity it has long demanded.
Crypto Week: Three Bills on the Table
House Republicans have announced that during the week beginning July 14, the House will review three major crypto bills:
- CLARITY Act – to establish clearer regulatory roles
- GENIUS Act – to regulate stablecoins
- Anti-CBDC Surveillance State Act – aimed at banning central bank digital currencies (CBDCs)
Of these, the GENIUS Act is expected to be a top priority. It has already passed the Senate, and President Donald Trump has voiced his support, pushing for its swift passage before the August congressional recess.
If the GENIUS Act clears the House next week, the CLARITY Act could be the next bill to reach Trump’s desk. The bill has already passed through two committees: the House Financial Services Committee and the Agriculture Committee.
Meanwhile, Senator Tim Scott, Chair of the Senate Banking Committee, has expressed interest in passing a crypto market structure bill before September ends, making the CLARITY Act a likely contender.
Resistance from Democrats
Democratic lawmakers have raised red flags about the bill. Maxine Waters, a top Democrat on the House Financial Services Committee, criticised the CLARITY Act during a June hearing. She called it a “rushed, overly complicated bill” that could allow risky crypto activities to go unchecked.
Waters also accused the bill of favouring Trump’s growing crypto empire, saying:
“Legitimising Trump’s crypto con is far from the only terrible thing about this confusing and reckless legislation.”
Concerns over Trump’s personal stake in crypto are fuelling political tension. Reports suggest Trump has gained at least $620 million through various crypto ventures, including a trading platform, a stablecoin, NFTs, tokens, and even a crypto mining business.
These connections have made Democrats wary of fast-tracking legislation that could be seen as benefiting Trump’s financial interests.
What’s at Stake?
At the heart of the debate is a single question: Can the US stay competitive in the global crypto race without clear regulations?
Industry leaders believe that without the CLARITY Act, the US risks losing its edge in digital finance. Lack of clear rules has made it difficult for institutions to enter the space, driving innovation to more crypto-friendly jurisdictions like the UAE, Singapore, and parts of Europe.
Supporters argue the CLARITY Act offers a balanced approach, not over-regulating the space, but also protecting consumers and providing accountability.
With “Crypto Week” approaching, all eyes are on Congress. Will lawmakers seize the opportunity to shape the future of crypto in America or will politics and personal rivalries get in the way?
The CLARITY Act represents a crucial moment for the US crypto industry. It promises the regulatory certainty that developers, investors, and innovators have been demanding for years. Whether or not it passes may decide whether America remains a leader in the blockchain revolution or gets left behind.
