The post What Is the CLARITY Act and Why Is It Bullish for Crypto? appeared on BitcoinEthereumNews.com.

Crypto in the US still has a basic problem. You can buy a token on a major exchange, use it on a network, stake it, pay fees with it, and still not know which rulebook applies. Is it a security (SEC rules), a commodity (CFTC rules), or something that changes over time? That uncertainty affects:  Where exchanges operate Where founders build Whether big institutions feel safe touching the market When rules are unclear, regulators tend to fill the gap with lawsuits and settlements, and everyone else has to guess what comes next. That’s why the CLARITY Act matters for crypto. It’s a major market structure bill designed to put clearer lines around who regulates what, and how tokens can be treated as commodities when networks mature.  Markets often read that kind of clarity as bullish, because it can unlock capital, products, and US-based growth. Key highlights: The CLARITY Act is a proposed US market structure bill that aims to reduce legal uncertainty in crypto by defining digital assets, splitting regulatory roles, and creating clearer compliance paths It gives the CFTC primary oversight of “digital commodities” and spot markets, while the SEC retains authority over digital asset securities Markets view this as bullish because clearer rules can unlock institutional participation, regulated liquidity, and US-based product growth As of January 2026, the bill has passed the House and sits in the Senate process, meaning clarity is not guaranteed yet What is the CLARITY Act (Digital Asset Market Clarity Act of 2025)? Think of the CLARITY Act as an attempt to write a real rulebook for US crypto markets, instead of letting policy get made case-by-case in court. At a high level, the bill tries to do three things: Define key terms like “digital asset,” “digital commodity,” and what it means for a…

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Filed under: News - @ January 16, 2026 4:27 am