#CryptoClarityAct 1. ⚠️ Crypto Crash Today

• The market experienced a sharp decline after the SEC abruptly revoked its approval of Bitwise's $1.7 billion diversified crypto ETF—only a few hours after granting it—citing Rule 431. This dramatic turnaround caused confusion and a massive sell-off of altcoins, destabilizing investors.

• This weekend's decline reflects broader uncertainty following the SEC's reversal on ETF strategy.

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2. CLARITY Act

• The Digital Asset Market Clarity Act was passed by the House on July 17, 2025, with a vote of 294–134. It establishes a functional framework: assets are classified by level of decentralization instead of the Howey Test, and designates oversight between the CFTC and the SEC.

• It establishes new registration categories (such as digital commodity exchanges and brokers), a certification process for token projects, and opens regulatory pathways for DeFi and custody.

• The bill now moves to the Senate, where industry feedback is being gathered.

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3. ETFs & the SEC

• Although it approved spot Bitcoin and Ethereum ETFs earlier, the SEC has suspended altcoin ETF conversions (e.g., Solana, XRP, Cardano via Grayscale) pending clearer guidelines.

• The Bitwise ETF episode highlights the SEC's capricious and evolving stance as it balances caution against risk with regulatory pressure to allow more diversified crypto investment products.

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4. Broader Regulatory Context

• This week in Congress, several crypto-focused bills advanced:

• GENIUS Act (stablecoin regulation),

• CLARITY Act, and

• Anti-Surveillance State CBDC Act (prohibiting central bank digital currency of interest).