Grayscale Backs the CLARITY Act as Senate Vote Nears on Crypto's Landmark Regulatory Bill

The Digital Asset Market Clarity Act, known as the CLARITY Act (H.R. 3633), is moving closer to becoming the U.S. crypto market's defining rulebook. The bill passed the House in July 2025 and advanced out of the Senate Banking Committee on May 14, 2026, in a 15–9 bipartisan vote. By late July 2026, it is lined up for a full Senate vote once negotiators resolve remaining disputes, centered largely on ethics provisions. What the bill does At its core, the CLARITY Act aims to end long-running uncertainty over which regulator oversees what in crypto. It would place "digital commodities" under the Commodity Futures Trading Commission (CFTC), while keeping investment contracts under the Securities and Exchange Commission (SEC). The package also lays out broader market rules, including token classification standards, disclosure requirements, trading platform regulation, custody requirements, and provisions that touch decentralized finance. The politics The bill's bipartisan momentum remains a key feature. During the Banking Committee markup, Democratic Senators Ruben Gallego and Angela Alsobrooks joined Republicans in voting yes. Why Grayscale is pushing for it Zach Pandl, Grayscale's head of research, has called the CLARITY Act a catalyst for institutional-scale adoption. His case: pension funds, endowments, and large asset managers are unlikely to allocate meaningfully to digital assets until federal rules are clearly defined. Pandl has also highlighted networks he expects to be prime beneficiaries of institutional inflows if the bill becomes law, including Ethereum, Solana, BNB, and Canton Network. Chances and remaining hurdles Polymarket odds in May 2026 pegged the likelihood of the CLARITY Act passing in 2026 at about 67%. Senate Republicans have signaled they are preparing updated bill text that includes stronger ethics language, a change viewed as important to winning enough Democratic votes. The ethics provisions are reported to address potential conflicts of interest for officials who oversee digital asset regulation while holding or trading crypto themselves.