Crypto Regulation: U.S. Lawmakers Push for Clarity by Year-End
Digital Asset Market CLARITY Act Gains Momentum
The Digital Asset Market Clarity Act is emerging as a pivotal development for U.S. crypto regulation. Coinbase CEO Brian Armstrong is actively lobbying in Washington, urging lawmakers to advance the bill, citing bipartisan support as a key factor for its potential passage before year-end.
Armstrong described the bill as “a freight train leaving the station,” emphasizing that it would prevent the current fragmented enforcement approach that has plagued the crypto industry. Instead, it aims to establish clear rules for companies to operate within, reducing uncertainty.
I was in DC the last few days working to get MARKET STRUCTURE legislation passed for crypto. This is how we ensure the crypto industry can be built here in America, driving innovation and protecting consumers, and making sure we never have another Gary Gensler trying to take your… pic.twitter.com/UqCH8jCNU8
— Brian Armstrong (@brian_armstrong) September 18, 2025
Senator Cynthia Lummis has expressed optimism that the bill could reach President Donald Trump's desk before the year concludes. Industry leaders from Ripple, Kraken, Circle, and venture firms like a16z and Paradigm are also supporting the initiative, underscoring the importance of regulatory clarity for growth.
What the CLARITY Act Would Do
The Digital Asset Market Clarity Act seeks to divide regulatory responsibilities between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The SEC would oversee digital assets functioning as securities, while the CFTC would regulate commodities and many tokenized assets, aiming to reduce confusion and overlap.
🚨NEW: Chairman @RepFrenchHill on the importance of enacting the CLARITY Act: “The United States can’t be competitive and lead in fintech if we don’t have this digital asset market framework.”
Watch more @SquawkCNBC 📺⬇️ pic.twitter.com/m0XTc2rdTy
— Financial Services GOP (@FinancialCmte) September 17, 2025
The legislation would also address tokenized stocks and assets that don't fit neatly into existing regulatory categories.
Stablecoins at the Centre of Debate
Stablecoins remain a key focus in crypto regulation. Armstrong noted that Congress is unlikely to approve measures banning interest on stablecoin holdings. Earlier drafts of the GENIUS Act contained such proposals but failed to gain support.
The GENIUS Act, passed in July, mandates that stablecoin issuers hold full reserves and adhere to strict standards, aiming to enhance the safety and integration of stablecoins into mainstream finance. Lawmakers also recognize stablecoins as crucial for efficient and secure payments, especially for cross-border transactions.
Strategic Bitcoin Reserve Discussions
Lawmakers are also exploring the possibility of a Strategic Bitcoin Reserve. This initiative proposes the U.S. accumulate one million Bitcoin over five years. Proponents, including MicroStrategy chairman Michael Saylor, suggest funding the purchases using gold certificates and tariff revenue, avoiding an increase to the federal deficit.
Such a reserve would mark a significant shift, positioning Bitcoin as a strategic asset akin to gold.
Related Legislation and the General Push
Beyond the Clarity Act, the CLARITY Act, already passed by the House, creates a new category called “tradable assets.” It expands CFTC jurisdiction and provides exemptions for non-custodial blockchain developers, while also requiring greater disclosure from broker-dealers in the event of insolvency.
These efforts, combined with the GENIUS Act, indicate a concerted push to establish a structured regulatory framework. Advocates argue that the U.S. must act swiftly to remain competitive with jurisdictions like the European Union and Singapore, which have already made progress in digital asset regulation. As the regulatory landscape evolves, Codeum remains committed to providing secure smart contract development and auditing services to ensure compliance and security for blockchain projects.