What Is the CLARITY Act? The Crypto Bill That Could Reshape US Regulation, Explained

If you follow crypto, you have heard the CLARITY Act mentioned constantly, usually as the catalyst that could send tokens like XRP higher. But what actually is it, what would it change, and where does it stand?

This plain-English guide explains the most important crypto bill in the US, who it affects, and why the whole industry is watching it. Last Updated: September 21, 2026 The CLARITY Act, formally the Digital Asset Market Clarity Act of 2025 (H.R.

3633), is the most advanced attempt yet to resolve one of US crypto’s most consequential questions: when does a digital asset fall under the Securities and Exchange Commission’s authority, and when does it belong to the Commodity Futures Trading Commission instead?

The bill passed the House in 2025, but its progress stalled on September 15, 2026, when the Senate rejected a procedural cloture vote 49-50, eleven votes short of the 60 needed to open floor debate.