The Digital Asset Market Clarity Act, better known as the CLARITY Act (H.R. 3633), passed the US House back in July 2025 and cleared the Senate Banking Committee with a 15-9 bipartisan vote on May 14, 2026. As of late July 2026, the bill is positioned for a full Senate vote once bipartisan negotiators iron out remaining sticking points, primarily around ethics provisions.
What the CLARITY Act actually does
The CLARITY Act tries to fix jurisdictional ambiguity by drawing definitive lines. Digital commodities would fall under CFTC oversight. Investment contracts would stay in the SEC’s lane. Beyond jurisdiction, the bill proposes comprehensive rules for token classification, disclosure requirements, trading platform regulations, custody standards, and even provisions addressing decentralized finance.
The bipartisan support is notable. Democratic Senators Ruben Gallego and Angela Alsobrooks voted in favor during the Banking Committee markup, joining their Republican colleagues.
Why Grayscale cares this much
Zach Pandl, Grayscale’s head of research, has framed the CLARITY Act as the key that unlocks institutional investment at scale. His argument is straightforward: pension funds, endowments, and asset managers won’t meaningfully allocate to digital assets until the regulatory framework is settled.
Pandl has identified specific networks that stand to benefit most from institutional inflows once the bill passes. His shortlist includes Ethereum, Solana, BNB, and Canton Network.
The odds and the obstacles
Polymarket odds as of May 2026 placed the probability of the CLARITY Act passing in 2026 at roughly 67%. Senate Republicans have indicated they’re preparing updated bill text with essential ethics provisions, a concession apparently needed to secure enough Democratic votes for passage. The ethics language reportedly addresses concerns about conflicts of interest among officials who might hold or trade digital assets while overseeing their regulation.