Clarity Act Reshapes Crypto Market: Cryptocurrencies to Formally Become a Recognized Asset Class ?
Background
In capital markets, every product is classified into asset class and supervised by relevant regulators. For example, stocks and commodities are overseen by different regulators such as SEC and CFTC.
Since the emergence of cryptocurrency in 2008, however, it has not been explicitly categorized under any existing asset class in the U.S. law. As a result, crypto assets have often been treated as “unclassified” assets in the market and could, in practice, fall under the jurisdiction of virtually any regulator at any time.
The most prominent example is the SEC’s lawsuit against Ripple over the $Ripple (XRP.CC)$ token since 2020, alleging that XRP constituted an unregistered security.
In addition, various regulatory bodies have tried to assert control over those aspects of cryptocurrencies that might touch their own statutory remit, launching investigations and lawsuits.
This has resulted in a “multi-headed jurisdiction” dilemma, creating regulatory uncertainty and confusion for crypto and digital asset businesses. Consequently, crypto projects face significant pressure that threatens their operational viability and long-term survival.
The Clarity Act fundamentally changes this landscape by explicitly defining most cryptocurrencies as “commodities” which, except in specific circumstances, fall under the oversight of the CFTC.
From this point onward, regulatory clarity is established through well-defined rules. Crypto and digital asset businesses will no longer face the constant risk of overlapping enforcement actions and litigation from multiple agencies.
Lastest Progress
Both the Senate Banking Committee and the Agriculture Committee were originally scheduled to hold hearings on the bill on January 15. However, due to ongoing disputes among lawmakers over certain details of the bill (such as stablecoin interest), both committees have announced postponements. The Agriculture Committee is tentatively expected to review the CLARITY Act around January 27.
The Clarity Act, also known as the Crypto Market Structure Bill, formally classifies cryptocurrencies—an asset type previously absent from statutory categories—as commodities, and assigns their primary supervision to the CFTC.
This legislation will clarify both the legal status and regulatory model for cryptocurrencies and will mark a new phase in the U.S. digital asset oversight. It directly addresses a core tension that has plagued the industry for years: the conflict between token issuance and securities law (as well as related statutes).
Market observers believe the Act removes the “legal sword” hanging over crypto projects and clears major obstacles to innovation in token issuance and trading.
This will greatly accelerate the adoption of the entire cryptocurrency market, represented by $Bitcoin (BTC.CC)$ and $Ethereum (ETH.CC)$ in the traditional financial world.
As the Senate’s relevant committees prepare to convene hearings to review the bill, Bitcoin has already rebounded above 96,000 USD, recovering nearly 20% from its previous low, and market sentiment has shifted from fear back to neutral.
Since the Clarity Act has already passed the House, if it is approved by the Senate Banking Committee and by the Agriculture Committee at the end of January, then proceeds to full Senate passage and is signed by the President, it could realistically come into force within roughly two to three months.
Market discussion around the bill’s prospects is intense, with the following main logic:
1. If both the Senate Banking and Agriculture Committees advance the bill, it will already have the explicit backing of key senators, greatly increasing its odds in a full Senate vote.
2. Markets expect that “crypto‑friendly” President Trump is unlikely to seriously oppose the legislation, so in an optimistic scenario, the bill could move quickly.
3. Lawmakers hope to secure key progress in January 2026. Federal government funding expires on January 30; if there is no breakthrough by then, the bill’s passage could be delayed by more than six months, potentially dealing a significant blow to the current market rally.
As a result, the conclusions reached by the two Senate committees in January could have a substantial impact on market conditions.
If the committees put forward largely aligned versions with no major points of contention, the Act could realistically be finalized between February and March. Otherwise, the process may be pushed back by half a year or more.
On prediction markets such as Polymarket, traders currently price the probability of the Clarity Act being signed into law in 2026 at roughly 67%.
Redrawing the Legal “Red Lines”
Historically, the greatest legal risk in issuing tokens has been violating securities law. The SEC has often relied on deliberately vague definitions to classify various tokens as unregistered securities and pursue enforcement actions based on securities regulations. This uncertainty has seriously constrained the healthy development of the industry.
The Clarity Act completely reshapes this situation. Under the Act, unless a token’s structure meets specific restrictive conditions—for example, involving direct equity transfer or a debt contract—issuance and profit‑sharing (dividends) will no longer be presumed to constitute securities transactions, but will instead be treated as dealings in commodities.
This “negative‑list” approach shifts regulatory logic from ambiguity to clarity and firmly establishes the legal status of non‑security tokens.
Compared with the SEC’s extremely strict oversight of securities, the CFTC’s rules for commodity markets are relatively more flexible.
Moreover, newly appointed CFTC Chair Michael Selig has struck a distinctly pro‑innovation tone on cryptocurrencies, stating that
the U.S. is in a unique period: new technologies, products and platforms are emerging rapidly; retail participation in commodity markets has reached historic highs; and Congress is about to send a comprehensive digital asset market structure bill to the President, one that could cement the U.S. position as a global crypto hub.
Selig has emphasized his willingness to shoulder the responsibility of ensuring stability and safety in the U.S. derivative markets during this rapid transition.
XRP: Emerging from the Shadow of Prolonged Litigation
This legal shift has had an immediate impact on Ripple (XRP). Since 2020, Ripple has been locked in a drawn‑out battle with the SEC over alleged securities‑law violations, a case that has long weighed on XRP’s price and market liquidity.
With the Clarity Act now providing a statutory definition of non‑security digital assets, the XRP token is no longer subject to fundamental legal uncertainty.
Legal experts note that the new standards have effectively undercut the SEC’s core arguments in the XRP case, leading to XRP’s full regulatory normalization and renewed acceptance by mainstream markets.
After the approval of the XRP ETF at the end of 2025, $Ripple (XRP.CC)$ rapidly became the third cryptocurrency—after BTC and ETH—to see net inflows above US$1 billion within a span of just two months, underscoring XRP’s strengthened legal footing and investment appeal in traditional finance.
Chainlink: Dual Tailwinds from Government Endorsement and Value Transmission
In the DeFi (decentralized finance) space, $ChainLink (LINK.CC)$ stands out as one of the major beneficiaries of the new regulatory framework. To understand Chainlink’s value, it is crucial to grasp its function as an “oracle.” Simply put, a blockchain is a closed system that cannot directly access external real‑world information.
Chainlink serves as the bridge, securely transmitting reliable off‑chain data to on‑chain applications and charging users fees for this service. You can refer to our previous article.
Chainlink’s technical capabilities have already gained formal recognition at the governmental level: the U.S. Department of Commerce has officially announced a partnership with Chainlink to publish key macroeconomic metrics such as GDP on‑chain.
This not only highlights Chainlink’s central role in trusted data transmission, but has also been widely interpreted as a de facto government endorsement of its infrastructure status.
Following the Clarity Act, Chainlink has been able to further unlock its economic potential. With securities‑law risks largely off the table and substantial, stable cash flow from its infrastructure services, the project has introduced a token buyback and profit‑sharing program.
This move has directly boosted market confidence; LINK’s price jumped by more than 50% after the announcement.
Uniswap: Compliance Dividend for Decentralized Trading
$Uniswap (UNI.CC)$ is another project worth close attention. As a decentralized exchange (DEX), Uniswap is fundamentally different from traditional centralized exchanges. It does not require users to entrust their assets to any financial intermediary; instead, trades are executed automatically through smart contracts.
Users can swap various assets directly with one another, eliminating the counterparty and custodial risks associated with intermediaries—a stark contrast to crises such as the collapse of Silicon Valley Bank in 2023.
Uniswap has a massive user base and strong cash flows. However, due to past regulatory concerns, its UNI token has been limited to governance functions. The Clarity Act removes key legal obstacles to distributing protocol revenue.
Markets broadly expect Uniswap to soon implement a fee‑sharing mechanism that directs a portion of trading fees back to UNI holders. Currently, Uniswap generates roughly US$1.5 billion in fee revenue per year on average.
Coinbase and Binance: No Longer Dragged Down by Token Legality
Against this backdrop, $Coinbase (COIN.US)$ and $Binance Coin (BNB.CC)$ were previously sued by the SEC on allegations that listing certain tokens (such as $Solana (SOL.CC)$ , ADA, and MATIC) amounted to selling unregistered securities—arguably the most existential legal threat hanging over centralized exchanges.
With the Clarity Act establishing a clear compliance pathway for digital commodities, these once‑fatal risks have largely dissipated.
Since 2025, as regulatory clarity has improved, Coinbase, freed from the constant threat that “listing tokens means getting sued,” has swiftly expanded strategic collaborations and M&A initiatives with Wall Street.
It has also rolled out a number of new products, including perpetual futures, Launchpad‑style public token auctions, and prediction markets.
Future Outlook: A New Paradigm for Tech Financing
If enacted, the Clarity Act could provide clearer regulatory frameworks that might influence broader technology sectors beyond crypto. With token‑issuance risk greatly reduced, some U.S. policymakers are proposing that technology companies use tokens as a financing vehicle.
This model is particularly well‑suited to the artificial intelligence (AI) industry. AI startups can raise R&D capital through token issuance without going through a complex traditional listing process, and many of these companies hold highly valuable assets such as computing power.
At the same time, the tokenization of real‑world assets (RWA) is set to accelerate. In the future, various forms of points, loyalty rights, and proof‑of‑entitlement could be represented as tokens and traded freely on‑chain. This points toward a new era of asset digitalization and frictionless value transfer.
Regulatory Weathervane: Key U.S. Crypto Regulatory Milestones in 2026
The year 2026 is shaping up to be defining period for crypto regulation in history. Six key milestones are likely to define the industry’s trajectory for the next decade:
1. January 15: Clarifying Regulatory Boundaries (Senate Banking Committee)
The Senate holds a hearing on the Crypto Market Structure Bill. If passed, it would formally end the years‑long jurisdictional tug‑of‑war between the SEC and the CFTC and provide the market with critical legal certainty.
2. May 15: A Turning Point at the Federal Reserve
Fed Chair Jerome Powell’s term expires. The Trump administration is expected to appoint a more open, dovish successor—an outcome that would shape not only macro liquidity, but also the Fed’s stance on central bank digital currencies (CBDCs) and stablecoins.
3. July 1: High Bar for State‑Level Regulation
California’s Digital Financial Assets Law takes effect. Given California’s unique status in global fintech, its licensing requirements are likely to become a model for other U.S. states and even foreign jurisdictions.
4. July 18: The First Year of Full Stablecoin Compliance
Deadline for implementing the technical rules under the GENIUS Act. Strict requirements on issuers’ capital adequacy and reserve transparency will usher stablecoins into a “fiat‑style regulatory” era.
5. August: Tax and Operational Tailwinds
Legislation to exempt small stablecoin transactions from capital gains tax, alongside CFTC technical rulemaking for blockchain‑based markets, is expected to move forward. This will directly lower the friction of using digital assets for everyday payments.
6. November 3: U.S. Midterm Elections
Many observers credit the recent wave of crypto‑friendly policies to President Trump’s pro‑crypto stance. The election outcome will therefore directly determine how durable these legislative gains are, and how strict or flexible regulatory enforcement will be in practice.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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