Podcast Ep.363ㅡCLARITY Bill, will go beyond the Bitcoin market and change the landscape of the financial industry

David Sachs, who previously served as the Virtual Asset Policy Director in the Trump administration in the United States, stated that if the “CLARITY Act” currently under discussion in the U.S. Senate is passed, the traditional banking industry and the virtual asset sector will truly become integrated. The bill aims to resolve the longstanding jurisdictional disputes between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC)—which has been the biggest regulatory challenge in the virtual asset market—and establish clear regulatory authorities based on asset characteristics. The core keywords are “legal definition of digital assets,” “integration with traditional finance,” and “market structure reorganization.”

For years, the U.S. virtual asset market has faced regulatory uncertainty amid differing positions from the SEC and CFTC. This has led many companies to relocate to overseas regions such as Singapore and Dubai, and access for institutional investors has also been restricted. The “CLARITY Act” proposes a framework to eliminate this opacity: decentralized assets like Bitcoin will be regulated as commodities by the CFTC; tokens with investment purposes will be overseen by the SEC; and utility assets not falling into the above categories will be classified as separate “subsidiary assets.” Additionally, the bill recognizes the legal validity of blockchain-based record-keeping systems and reduces the substantial capital requirements for banks to custody virtual assets, thereby lowering the barriers to market entry for banks.

The most significant change is that, under the vision of an “integrated industry,” banks will be able to fully enter the virtual asset service sector. Major banks such as JPMorgan Chase and Bank of America will be granted legal authorization to directly offer Bitcoin trading services, custody digital assets for clients, and issue and operate stablecoins within their applications. Furthermore, they can provide liquidity based on bank deposits to existing decentralized finance (DeFi) platforms and earn interest, facilitating integration with traditional finance. Sachs described this bill as “an unprecedented shift that breaks down the boundaries between the virtual asset industry and banking industry.”

However, discussions around interest payment standards for stablecoins could introduce uncertainties. Virtual asset companies believe that paying interest is a key method to attract users, while the banking industry has opposed this, viewing it as unfair competition. Sachs emphasized that for the bill to pass, both sides need to reach a compromise. He particularly warned that if the bill stalls, banks constrained by current regulatory frameworks could suffer greater losses.

Market structure will also undergo significant changes. Standard Chartered predicts that if the bill passes, inflows of institutional funds could drive Bitcoin prices to surge to between $150,000 and $200,000 by the end of 2026. Subsequently, the launch of ETF products for major competitors outside of Ethereum, such as Solana and XRP, will become clearer, accelerating the institutionalization process of the entire cryptocurrency market. It is expected that venture capital and developers will return to the U.S., enhancing the overall competitiveness of the blockchain industry.

However, concerns about privacy and political power concentration are also emerging. Kadan Stadelmann, CTO of the Komodo platform, criticized, “Excessive KYC/AML requirements could infringe on privacy, and strong regulation might lead to monopolistic structures that favor only a few companies.” Democratic Senator Cory Booker warned of political risks: “If the bill passes, the President will have the authority to dismiss SEC and CFTC commissioners, which could undermine the independence of these agencies.”

The bill is scheduled to enter review by the Senate Banking and Agriculture Committees starting January 2026, with the goal of obtaining final presidential approval around April to May of the same year. Former President Trump has reportedly committed to signing it, but Democratic opposition and coordination processes still pose uncertainties. If the bill is passed as planned, detailed implementation rules are expected to be announced gradually from the second half of 2026, and virtual asset services by banks will officially and fully commence.