CLARITY Act Regains Momentum: New Developments in US Crypto Regulation and Impact on Bitcoin

Despite stalling earlier this year due to key personnel departures, the US CLARITY Act has recently regained industry attention. The bill aims to establish a clear regulatory framework for the cryptocurrency industry, but its progress has not been smooth. Former Coinbase CEO Brian Armstrong publicly questioned the bill's bias towards traditional banking systems, raising market concerns about regulatory fairness and leading to speculation that the legislative process might be shelved.

Currently, although the bill has regained momentum, it still faces significant obstacles in the Washington legislative environment. Unlike other fiscal appropriation bills, the CLARITY Act cannot be fast-tracked by being bundled into large budget bills; it must rely on bipartisan consensus. Opposition comes from politicians like Senator Elizabeth Warren, a long-time critic of the crypto industry, but the support of key figures such as Senate Majority Leader Chuck Schumer and Representative Ruben Gallego adds significant weight to the bill's prospects.

Meanwhile, the policy advisory team of the Trump administration, including David Sacks and Patrick Witt, is actively involved in coordinating core clause disputes, attempting to bridge the gap between regulators and the industry. If the bill is ultimately passed, the market generally expects it to significantly boost institutional investor confidence. Clear legal boundaries are expected to drive large-scale entry of traditional financial entities such as banks and asset management companies into the crypto asset space, bringing long-term capital inflows to mainstream digital assets like Bitcoin. However, if political maneuvering leads to significant amendments to the bill or long-term delays, the market may continue to be mired in uncertainty, suppressing institutional entry and delaying the maturation of the US crypto ecosystem. From a historical perspective, the implementation of major regulatory policies often follows the market pattern of "buy the rumor, sell the fact." If the CLARITY Act makes substantial progress before mid-2026, traders may position themselves in advance, driving price volatility. Industry analysts generally predict that the bill is expected to complete the legislative process before July 2026, but the final timeline still depends on the depth and breadth of congressional negotiations.