told CNBC.
Regulators Are Already Moving Without Congress
Even without legislation, the Trump administration has already started reshaping crypto policy.
In March, the SEC and CFTC
issued joint guidance on how securities and commodities laws apply to crypto assets.
The SEC went further in July, outlining plans for clearer rules on crypto fundraising, custody, tokenized securities, and on-chain trading. SEC Chair Paul Atkins
said the agency is “ready, willing and able” to continue acting if the CLARITY Act fails.
SEC Chair Paul Atkins has been among the Trump administration’s most outspoken advocates for the CLARITY Act. Source: CNBC
This industry-friendly stance has given exchanges, issuers, and institutions breathing room. But without changes to federal law, a future administration could reverse course.
“The longer the approval of the CLARITY Act is postponed, the greater the threat to crypto markets,” JPMorgan analysts
wrote. They warned that delays could steer tokenization growth toward traditional financial infrastructure rather than public blockchains.
Read More: The CLARITY Act Is Close: What Happens if Crypto’s Biggest US Bill Passes?
Bitcoin Can Rally Without It, but Altcoins Have More To Lose
Markets still view the CLARITY Act as an important catalyst. On July 21,
reports of progress on an ethics compromise helped lift Coinbase shares by 9.6%, Circle shares by 8.6%, and Bitcoin (
BTC) by about 2%.
A failure to pass the bill could trigger the opposite reaction. But legislation is only one force shaping the crypto market. Interest rates, ETF flows, liquidity, and broader risk appetite are likely to matter more.
Bitcoin also faces less regulatory uncertainty than most tokens because its status as a commodity is relatively well established. The CLARITY Act could strengthen a rally by accelerating institutional adoption, but its failure would not rule out another bull market.
Bitcoin’s choppy performance in July is partly attributable to CLARITY Act uncertainty. Source: CoinMarketCap
Altcoins, exchanges, and DeFi platforms have more at stake. The bill would give eligible tokens a path to commodity treatment and establish disclosure and registration rules for issuers and trading platforms.
Without it, those markets would remain dependent on interpretations that future agency heads could upend.
“The industry will not be in crisis without CLARITY in 2026, but it may remain on borrowed time,” Galaxy Research head Alex Thorn
wrote.
The Real Risk Comes After the Next Election
Even without the CLARITY Act, continued institutional adoption, political support, and regulatory easing could sustain another market rally.
Senator Cynthia Lummis warns that failing to pass the CLARITY Act now could set America’s crypto industry back for years. Source: X/Senator Cynthia Lummis
The framework, however, would remain vulnerable. Without clear statutory roles for the SEC and CFTC, a future administration could reverse guidance, tighten enforcement, and reopen questions the market treats as settled.
The current legislative session is “likely the last real chance we will have for years to get this right,” Sen. Cynthia Lummis
said.
Read More: The GENIUS Act Turns One, but the Stablecoin Gold Rush Is Just Beginning
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