Brian Armstrong,chief of Coinbase Global, is pushing hard for the Clarity Act's impact on crypto . On July 21, he told CNBC the legislation's almost ready,calling it at "one-yard line." If it passes this year, major cryptos like Ethereum, XRP,and Solana could see big changes.
But don't hold your breath. Odds of the Clarity Act passing by 2026 are just 30%. If it does, it might revive the struggling crypto market. Institutional investors, long waiting for clear rules, could jump in.
The Clarity Act aims to nail down crypto regulations. Right now, the SEC and CFTC jointly classify Bitcoin, Ethereum,Solana, and XRP as digital commodities. This means CFTC's lighter touch,not SEC's heavy hand.
But this guidance isn't set in stone; future regulators could change it. The Clarity Act would cement a legal framework, letting companies like Coinbase plan better. Armstrong's push for the Act boosts Coinbase's standing in D.C.,possibly swaying future talks.
If signed into law by late 2026 or early 2027,analysts say the crypto bear market might stabilize. Institutional investors might start pouring money into Ethereum,XRP, and Solana, key in asset tokenization.
If the Act stalls, though, the bear market could drag on. Any recovery signs could vanish, leading to more stagnation. Ethics rules for officials,even the president,are the main hurdles. Core issues on market structure? Less of a fight.
With Congress on August break,the Clarity Act's fate is up in air. Crypto might drift sideways until lawmakers return to tackle it. Investors and stakeholders are waiting, hoping for clarity to reshape the industry.
Meanwhile, the crypto market,worth about $1.8 trillion,is in flux. Big changes depend on the Clarity Act's outcome and broader regulation . Armstrong's push could be key in shaping crypto's future .
