The CLARITY Act’s Passage Could Redefine Crypto’s Legal Status — And Where Investors Can Trade It

If enacted, the CLARITY Act would resolve long-standing regulatory uncertainty that has constrained U.S. crypto innovation and market access. The bill, which passed the House 294-134 in July 2025, would classify most cryptocurrencies as 'digital commodities' under CFTC jurisdiction, shifting oversight away from the SEC for non-security tokens. Digital assets deemed securities would still fall under SEC authority, preserving investor protections while allowing other projects to operate under clearer, lighter rules. Stablecoins would be explicitly recognized and regulated under the framework, addressing a key gap in current law. The legislation would also permit 24/7 trading of digital assets, aligning market hours with global demand and infrastructure realities. Ripple CEO Brad Garlinghouse, who has led the company for 11 years amid protracted SEC litigation, recently met with Senators Hagerty, Moreno, Scott, and Boozman, as well as White House advisor Patrick Witt, to push for passage. He remains optimistic despite Senate hurdles, particularly over stablecoin provisions, viewing the bill as a long-awaited win for U.S. competitiveness in digital finance.