Will the Coin Market Explode if the CLARITY Act Passes?

▲ Cryptocurrency ©Dasol Ko

A single line of U.S. regulation could change the market's direction—the $2 trillion market is keenly awaiting the passage of the 'CLARITY Act'.

According to investment specialized media FXLeaders on April 9 (local time), pressure is mounting for the passage of the CLARITY Act, a U.S. cryptocurrency market structure bill aimed at clarifying the regulatory framework for digital assets. Treasury Secretary Scott Bessent warned that delays in legislation could cause the U.S. to fall behind in the global digital asset competition. The current cryptocurrency market size continues to fluctuate between $2 trillion and $3 trillion.

The core of the bill is to clearly distinguish the legal nature of cryptocurrencies as either securities or commodities and to reduce regulatory overlap between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Expectations are growing that if regulatory uncertainty is resolved, the entry barriers for institutional investors will be lowered, enabling large-scale capital inflow.

In the actual market, rapid adoption is already underway even before regulatory reforms. One in six Americans holds digital assets, and major financial institutions continue to launch cryptocurrency-related products and adopt blockchain technology in their payment and settlement systems.

However, the bill's processing is delayed in the Senate. The main reason is the conflict of interest between traditional finance and the cryptocurrency industry. In particular, a point of conflict with the GENIUS Act, which regulates stablecoins, has emerged as a key issue regarding stablecoin regulation. The debate is escalating due to concerns that interest-bearing stablecoins could erode bank deposits.

Nevertheless, the market is maintaining a stronger-than-expected trend. Bitcoin (BTC) is maintaining a stable price range based on institutional demand and ETF capital inflows, and expectations for policy changes are supporting investor sentiment. Experts suggest that if the CLARITY Act passes, the market size could expand back to the $3 trillion level.

Conversely, analysis suggests that increased volatility is inevitable if the bill continues to be delayed. This is because market confusion could deepen if regulatory authorities act individually without congressional consensus. The Senate hearing scheduled for this month is drawing attention as a key turning point that will determine the future direction of the market.

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