The Clarity Act could classify major cryptocurrencies as commodities, reducing regulatory uncertainty for ETH and others.
Coinbase Global (NASDAQ: COIN) CEO Brian Armstrong stated the Clarity Act has reached the “one-yard line” but faces only a 30% chance of passage in 2024. The legislation aims to codify regulatory treatment for cryptocurrencies like ETH, XRP, and SOL as commodities, aligning with a March joint SEC-CFTC guidance.
Current guidance classifies these assets as digital commodities under the CFTC’s oversight, but the ruling lacks legal permanence. A statutory framework would prevent future regulatory shifts, providing long-term clarity for the crypto market.
Market reaction remains uncertain, as passage could trigger immediate gains for affected assets, while failure may delay regulatory resolution until 2025.