In July 2025, House Republicans staged a coordinated three-bill blitz they called ‘Crypto Week;, advancing the GENIUS, CLARITY, and the Anti-CBDC Surveillance State Act in the same five day stretch. In less than 24 hours, the GENIUS Act became law. It created a framework to regulate dollar-backed stablecoins. Other two bills, however, were less fortunate. The Anti-CBDC Surveillance state passed by a very narrow margin in the House, but remained in Senate Purgatory for more than a year without any floor votes.
After the CLARITY Act was passed by the House on a bipartisan basis, it went to the Senate Banking Committee. It sat there for almost a full year. The bill’s cover included the phrase “When the bill was finally passed out of the committee.” “Strike out all after the enacting clause and insert the part printed in italic.”
The bill has been completely rewritten.
You can also contact us if you have any questions. pull up the bill You can now see on the Congress website that all of the first 256 (the House’s entire bill) has been purged, bottom to top, by removing each line. On page 258, the Senate version is introduced. This is the current official version of the bill; an updated draft circulated in recent months, but it has not been filed as a formal amendment.
It’s important to take a look at the CLARITY act in its current form and see if the CLARITY acts can actually help Bitcoin. “act as the catalyst for the next bull run” What I’ve seen on X so many times today.
What is the bill? It is a good idea to use Bitcoin
Self-custody now a protected legal right
Section 605, the ‘Keep Your Coins Act’, prohibits federal regulators from restricting or impairing a person’s ability to self-custody for any lawful purpose. The self-custody system currently lacks any statutory support. Direct legislation is a way to protect against the future use of custodial agents by tyrannical authorities.
While people often dismiss this threat as ‘fear mongering’ and ‘doomerism’, this type of overreach does have recent historical precedent. Treasury Secretary Steven Mnuchin instructed FinCEN in 2020 to draft a new rule that targets “unhosted wallets”. The rule would have mandated that exchanges collect the names and addresses of anyone who moved more than $3000/day to their personal wallet and report to FinCEN anything above $10,000/day. The rule was never implemented, but it has remained in place and is still valid. Four years ago, the year was almost 2004. Any Treasury Secretary during that time could have brought it back to life and completed the legislation without any additional legislation.
Section 605 has been written in order to stop this exact situation from ever happening again.
Bitcoin node operators and non-custodial Wallet makers are exempt from liability as money transmitters.
In Section 604 of the Blockchain Regulatory Certainty Act it is stated that “non-controlling” A developer or provider cannot be classified in this way as a money transmission business. Samourai Wallet or Tornado Cash are two prime examples. The developers of both open-source and non-custodial project were prosecuted for criminal offenses on the grounds that the publication of the source code rendered them unlicensed money transmitters. Samourai founders plead guilty to the charge of money transmission in April 2026. Tornado Cash Roman Storm is convicted in August 2025 on this same charge.
It does not reverse either decision, but it does mark a boundary so that the next developer of open-source software does not have to go back and find where their case is at federal court.
Bitcoin receives a green light from the banks
The Section 401 of the “Permissibility of Digital Asset Activities”The only part of CLARITY that has been deemed unconstitutional is section “bullish” My estimations for Bitcoin’s value. This section will finally allow banks, brokers, and other institutions to treat Bitcoin as a true asset class. It would bring in new capital.
Section 501 allows national and state banks and financial holdings companies to custody digital assets and lend on them as collateral. The section also permits these institutions to operate nodes, offer brokerage and clearing, act as a dealer or market maker, without requiring any additional prior approval. The term “digital asset” is used in this section. “digital asset,” The GENIUS Act, which has already been passed, provides a broad definition. The GENIUS Act, which is already in place. “digital commodity” The following are some examples of how to use “ancillary asset” Bitcoin is clearly defined in this bill.
This opens up a huge market. US banks have $25.7 trillion total assets. That’s nearly 20x the market value of Bitcoin ($1.3 trillion). State Street, Northern Trust and other giants in the custody industry have individual books of trust that dwarf Bitcoin’s entire market by several orders of magnitude. This capital does not need to be moved far or risky to affect the price of such a huge asset. You just need a legal and statutory opening like Section 401.
What is the bill? doesn’t Bitcoin
Bitcoin is not a commodity under federal law.
In the current state of affairs, Bitcoin has been treated as a product because it is so defined by the CFTC. Courts have also agreed to this in cases involving enforcement. This is a precedent and not a statute. It is not possible to stop future regulators from viewing this in a different way.
CLARITY, as passed by the House of Representatives in June 2015, would have filled this gap. The Senate removed the entire language when it rewrote this bill on 1 June. For weeks nothing was replaced.
CFTC’s framework for the Senate Agriculture Committee, developed on July 22, incorporates the CLARITY draft. This definition is now included. This draft has not yet been filed as an amendment or law.
The Federal CBDC is not banned
The version of this bill passed by the House had a subsection called the “Anti-CBDC Surveillance State Act”The federal reserve was prohibited from issuing CBDCs for retail. The Senate Banking Committee removed this section from the 256-page bill, which is why the current version of the legislation does not include a section that addresses the issue.
It will be a long time before the rules are actually implemented, even if they pass.
Here is the place where you can find “CLARITY Act supercycle incoming” Narrative falls flat. The regulator that comes with the signed bill is not functional. The CFTC will have to start from the ground up.
The GENIUS Act was signed last year and missed its deadline of one full calendar year for rulemaking. Six federal agencies will have zero final rules by mid-2026. CLARITY gives the CFTC a new, large mandate. The CFTC has only one commissioner currently and its staff has decreased by 21% over the past year.
What is the CLARITY? Bitcoin bill?
Honestly? No.
CLARITY’s bullishness is broader for cryptocurrency, though it may be a little less bullish on Bitcoin. The bill is designed to help altcoins get out of the securities laws limbo. Bitcoin has no such problem.
Though, “not the main point” The same thing as “it doesn’t matter”. The bill includes specific pro Bitcoin language, which is worth a vote on its own.
Bitcoin is the first digital currency in the world, with an estimated market capitalization of more than $1.3 trillion.
Bitcoin will never live or die on Capitol Hill.
This guest post is by Isaiah Austin. The opinions are the author’s and not those of BTC Inc.
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Source: bitcoinmagazine.com
