US Digital Asset Regulation: CLARITY Act Gains Momentum

The US government's efforts to regulate digital assets have taken a significant step forward with the increased chances of the CLARITY Act passing into law by April 2026.

Ripple CEO Brad Garlinghouse has expressed confidence in the bill's prospects, citing steady legislative progress and growing bipartisan interest in market structure legislation. The improved odds reflect recent engagement between lawmakers, the White House, crypto firms, and banking representatives.

The CLARITY Act, formally known as the Digital Asset Market Clarity Act, seeks to establish a unified federal framework for digital assets. It would assign assets that resemble securities to the securities regulator and commodity-like assets to the Commodity Futures Trading Commission, providing clearer boundaries and reducing legal uncertainty.

Supporters of the bill argue that this clarity will reduce compliance risks and encourage broader participation from established financial institutions. However, stablecoins remain a central issue in negotiations, particularly regarding whether issuers can offer yield-style features on reserve-backed holdings.