Can Washington Restore Trust in Cryptocurrency With ‘Clarity Act’?  

The US Congress delay new crypto law, Clarity Act, as President Trump pushes digital assets as part of a new economic vision to regain a trust that will alter a financial system as the US dollar’s slowly drops. 

The Clarity Act law holds high importance for President Trump and the country, in hopes that the newly adopted pro-crypto environment will enforce a more comprehensive regulatory framework. The Trumps administration is fighting an inflation looming in the horizon, the devaluing of the US dollar.  

The Crypto Asset Regulatory Framework and Investor Transparency Act (CLARITY ACT) is a proposed 2026 legislation that will establish a unified US regulatory structure for digital assets. If it gets signed into law by the Senate, the ACT will end the jurisdictional turf war, where the Commodity Futures Trading Commission (CFTC) would oversee digital commodities, such as Bitcoin, and the Security and Exchange Commission (SEC) would manage assets deemed securities.  

Could regulatory-backed crypto ecosystem stand as the connector between the legacy banking systems and a potential new crypto economy? 

It’s Not Legislative Power, but Financial Power 

Cryptocurrency is deeply tied to American finance, its value now moves alongside political pressure, dollar power, and public trust. At the center of the Clarity Act is how digital assets and the law can coexist without destabilizing the broader financial system – be it in the US or the global financial stage. 

The wait to legislate the new crypto law has left the market exposed. Lack of clarity will make crypto prices vulnerable to every signal from Washington. Reinforcing fears that regulation is being used strategically rather than structurally and strengthening the claims that US regulatory framework is weaponizing the cryptocurrency value worldwide not just US.  

Is Cryptocurrency Regulated in the US? 

US Crypto is partially governed but still lacks a unified framework. The delayed progress of the Clarity Act, including the postponed Senate Agriculture Committee hearing, has fortified a divided system of regulation crypto, where surveillance is split and long-term rules remain uncertain. 

Bitwise, crypto asset management firm, warned from delaying new crypto law, fearing it could push the market into a slower phase. This vagueness has already affected investor sentiment. 

According to Bitwise CIO Matt Hougan, the market is slipping into a “show me” phase, where investors demand proof of real-world value before committing capital. 

That was reflected in prediction markets, where Polymarket traders cut the odds of the bill passing from around 80% earlier this year to 50%, highlighting declining confidence driven by delayed crypto regulation updates. 

Due to the fact that digital currencies are traded irreversibly to the US dollar, regularity hesitation increases volatility. When trust in the dollar weakens, crypto prices often fall with it, pulling parts of the legacy financial system into the same cycle. 

Unclear regulations for cryptocurrency allow this instability to spread faster, turning crypto’s value into a force that can be influenced by political timing and policy pressure

 Prediction platforms tracking crypto regulation updates show falling expectations that lawmakers will deliver clarity soon, signaling declining trust in Washington’s ability to stabilize crypto’s role in finance. 

Cryptocurrency in Economic Power Struggles 

At the World Economic Forum (WEF) at Davos, President Trump framed the US as the “global crypto capital,” presenting digital assets as an economic reset to fight weakening faith in the dollar. 

The industry, however, is still heavily fractured, another incentive for the US to legislate any digital assets law. 

Coinbase CEO, Brian Armstrong, withdrew support for the bill, warning that restrictive regulations for cryptocurrency could harm consumers and suppress competition rather than strengthen the market. 

This division has fueled ongoing crypto regulatory news, emphasizing the sense that crypto’s value is being weaponized. Each delay increases volatility, making markets more reactive to politics than technology. 

The tension is remarkably visible in areas tied to decentralized finance regulation, where innovation moves faster than US congress can respond. As a consequence of no clarity, investors continue shifting toward safer assets while avoiding sectors most exposed to policy risk like the crypto market. 

As debate continues, the fate of the new crypto law will shape how digital assets and the law interact with the US economy. Whether crypto becomes a stabilizing force or a tool of financial pressure, it all depends on the trust that can be rebuilt before the system changes entirely. 

If passed, the new crypto law would provide banks with a rulebook to compete with digital assets and stabilize volatile markets through defined standards. Without it, both traditional finance and crypto risk being locked in a weaponized gray zone that serves one political party.  


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