Markets don’t fear regulation — they fear uncertainty.
Right now, the U.S. crypto industry is operating in a fog where rules are implied, enforced after the fact, and interpreted differently by every agency. The CLARITY Act is supposed to end that confusion by clearly defining what is a security, what is a commodity, and who regulates what. That clarity matters more than any short-term price move.
Capital doesn’t hesitate because innovation is weak. It hesitates because legal risk is unquantifiable. Builders delay launches. Institutions stay on the sidelines. Traders price in regulatory shock instead of fundamentals.
The longer the CLARITY Act stalls, the more activity quietly moves offshore — not because people want to evade rules, but because they want rules they can actually follow.
The real question isn’t if it will pass.
It’s how much market share the U.S. is willing to lose before it does.