Imagine January 2026. The U.S. Senate passes the "Digital Asset Market Clarity Act" (CLARITY Act) with overwhelming support, and Bitcoin surges by 20%, followed closely by Ethereum, as massive institutional funds flood into the market. Sounds like a fantasy? But it’s very likely to become a reality. As a watershed moment in cryptocurrency regulation history, the final passage of the CLARITY Act will end years of policy uncertainty and provide unprecedented clear guidance for the entire industry.

**Positive Signal: Clear Regulations Drive Market Expansion**

The core value of the bill lies in the division of responsibilities. Mainstream digital assets like Bitcoin and Ethereum are explicitly defined as "digital commodities," regulated by the U.S. Commodity Futures Trading Commission (CFTC); tokens with securities attributes are overseen by the Securities and Exchange Commission (SEC). How important is this distinction? In other words, it will completely end the chaotic era filled with enforcement uncertainties.

For a long time, the biggest pain point in the crypto market has been regulatory ambiguity. Projects don’t know if they are violating laws, investors worry about policy changes, and institutions are hesitant to enter. The introduction of the CLARITY Act is like installing a guiding light for this market. Institutional investors crave this kind of certainty—once the legal framework is fixed, capital will accelerate into the space.

**Market Reality: From Wild Growth to Regulated Development**

The arrival of regulation means the industry is moving from reckless growth to a regulated development phase. In the short term, the market may experience some adjustments, but in the medium to long term, this is beneficial for the entire ecosystem. Compliant exchanges, clear legal statuses, and reduced risk premiums will all attract incremental capital.

Players operating in the previously ambiguous areas will gradually be phased out, and truly capable projects and platforms will stand out. For ordinary investors, this actually means a safer environment for participation.

The future of the crypto market depends on regulatory clarity. The advancement of the CLARITY Act is not just about the bill itself; it represents a shift from passive response to proactive planning for the entire industry. When exactly this transition will occur and how the market will react remain to be seen.