A new draft of the CLARITY Act has emerged from the U.S. Senate, proposing a new framework for regulating the cryptocurrency market in the United States. The bill aims to end years of regulatory uncertainty by establishing clear rules for asset classification, agency oversight, and exchange standards. For investors, the most significant proposal is a novel approach that would grant non-security status to any cryptocurrency included in a regulated Exchange-Traded Fund (ETF).
This move would automatically place altcoins such as Solana (SOL), Ripple (XRP), and even the meme-inspired Dogecoin (DOGE) in the same regulatory category as Bitcoin and Ethereum, which already have approved ETF products. By linking an asset’s legal status to its inclusion in a regulated financial product, the bill provides a clear, market-based pathway for digital assets to be treated as commodities rather than securities.
The introduction of the CLARITY Act comes after a year of mixed but generally positive performance for the crypto market, which has been heavily influenced by the very regulatory uncertainty this bill seeks to resolve.
Year-to-date, the cryptocurrency market has seen a significant recovery from previous lows, largely driven by the successful launch of spot Bitcoin and Ethereum ETFs. These products have unlocked a wave of institutional capital and provided mainstream investors with a regulated way to gain exposure, validating the digital asset class. However, the market has remained fragmented, with regulatory ambiguity in the U.S. casting a shadow over many altcoins and stifling innovation.
DOGE has continued to trade based on community sentiment and social media trends, but its inclusion in the bill’s framework highlights its staying power and potential for broader acceptance. The altcoin has gained 20% year-to-date.
If passed, the CLARITY Act would represent a critical moment for the U.S. crypto industry. By providing a clear rulebook, it would likely unleash a new wave of institutional investment, encourage product innovation, and provide a positive sentiment for assets like SOL, XRP, and DOGE as they gain legal certainty and a pathway to broader market integration.
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** This article was prepared by BROKSTOCK analyst Maboko Seabi
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