What is the CLARITY Act in US crypto regulation?

The Digital Asset Market Clarity Act of 2025 is proposed US legislation designed to create clearer rules for cryptocurrency markets and digital asset companies. Supporters argue it would reduce regulatory uncertainty and encourage more crypto businesses to operate inside the United States.

Why do crypto executives support the CLARITY Act?

Industry leaders believe the CLARITY Act could help bring crypto trading, investment and innovation back to US-based platforms. Many companies currently operate offshore because of uncertainty around how US regulators classify and oversee digital assets.

Why is most crypto trading happening outside the United States?

According to Consensys lawyer Bill Hughes, most crypto trading volume currently occurs on offshore exchanges despite the US dollar remaining the largest fiat entry point into crypto markets. Regulatory uncertainty in the US has pushed many exchanges and projects to expand internationally instead.

How dominant is Binance in global crypto trading?

Binance controlled more than 38% of all centralised exchange trading volume in December 2025, making it the largest crypto exchange globally. By comparison, Coinbase was the only US-based exchange in CoinGecko’s top 10 rankings with a market share of 6.1%.

Why does the crypto industry say time is running out for the CLARITY Act?

Supporters say the US Senate has only a limited window before lawmakers shift focus to the 2026 midterm elections. Once campaign season intensifies, major crypto legislation may become harder to pass.

What could happen if the CLARITY Act fails to pass?

Bill Hughes warned that if Congress misses the current legislative window, the next realistic opportunity for comprehensive crypto market regulation may not arrive until 2030. That could extend uncertainty for exchanges, developers and institutional investors.

How could the CLARITY Act affect Coinbase and US crypto exchanges?

Clearer regulations could strengthen the competitive position of US exchanges like Coinbase by making it easier to attract trading activity and launch new products domestically. Supporters believe this may help reduce reliance on offshore exchanges such as Binance.

Why does regulatory clarity matter for crypto investors?

Regulatory clarity can improve investor confidence because companies and exchanges have clearer operating rules and compliance expectations. It may also encourage more institutional capital to enter the crypto market over time.

CLARITY Act seen reshoring US crypto trading

Written by Liezl GambePublished May. 11 2026

The Digital Asset Market Clarity Act of 2025 could help return crypto trading activity to the United States by creating clearer rules for the industry, according to Consensys senior counsel Bill Hughes.

Hughes said the US dollar remained the world’s largest fiat gateway into cryptocurrency markets, generating more than $2.4 trillion in trading volume between July 2024 and June 2025 despite most crypto trading occurring outside the US.

Binance accounted for more than 38% of all centralised exchange trading volume in December 2025, while Coinbase was the only US-based exchange listed among CoinGecko’s top 10 exchanges with a market share of 6.1%.

“The Senate has only weeks to move the bill before the August recess, after which the midterm election calendar takes over,”

Said Hughes.

Hughes warned that failure to advance the CLARITY Act soon could delay comprehensive US crypto market legislation until as late as 2030 because of the approaching midterm election cycle and political campaigning.

Ripple chief executive Brad Garlinghouse also cautioned during the Consensus 2026 conference in Miami that the legislation still faced uncertainty despite gaining momentum in Washington.

A HarrisX poll published in May found that 52% of 2,028 registered US voters supported the CLARITY Act, with backing spread across both Republican and Democratic voters.