Potential Massive Growth in Cryptocurrency: The CLARITY Act Might Propel Market Value to $10 Trillion - Cardano's Creator Predicts Boom
The Digital Asset Market Clarity Act of 2025, or CLARITY Act, has recently been passed by the House on July 17, 2025. This landmark legislation is set to revolutionise the cryptocurrency market, stablecoins, and tokenized real-world assets by providing a clear regulatory framework that divides oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), thereby reducing ambiguity and fostering innovation while enhancing consumer protections.
Cryptocurrency Market
The Act clearly defines digital assets and establishes registration categories for digital commodity exchanges, brokers, and dealers under the CFTC. It creates a comprehensive framework for custody and trading, including mandatory segregation of customer assets from custodians’ own holdings, prohibition of rehypothecation without consent, and audit and control standards, which enhance market integrity and investor confidence. Trading of digital commodities will occur on regulated platforms, improving transparency and enforceability of security interests similar to traditional securities markets. A decentralization safe harbor offers a three-year compliance window for decentralized projects, supporting innovation while setting a clear path to regulatory adherence.
Stablecoins
The legislation is part of broader efforts that include companion laws like the GENIUS Act to foster stablecoin market innovation and growth while integrating stablecoins into a clear regulatory construct. By codifying regulatory roles and operational rules, stablecoin issuers and intermediaries are subject to well-defined oversight, which aims to protect consumers and reduce systemic risks associated with stablecoins, such as insolvency or commingling of assets.
Tokenized Real-World Assets
The Act’s clear statutory definitions and operational requirements facilitate the issuance, custody, and trading of tokenized assets, including real estate or commodities represented on blockchains. Elevation of custody standards and prohibition of unnecessary commingling or rehypothecation improve legal certainty and enforceability of property rights in tokenized assets, promoting secure integration into lending and structured product frameworks. Extension of CFTC’s commodity pool regulations to digital commodities may affect funds investing in tokenized assets, imposing new compliance requirements that could reshape investment vehicles holding such assets.
Charles Hoskinson, co-founder of Cardano, believes the passing of the CLARITY Act could give investors and developers legal certainty. If the trend of stablecoin growth continues, dollar-backed tokens could become a major part of how people store and move value. Hoskinson predicts that stablecoins and tokenized real-world assets could surge due to the passing of the CLARITY Act, potentially leading to a stablecoin market valued at between $1 trillion and $2 trillion. Major tech firms like Apple, Alphabet, Amazon, Microsoft, Meta, Nvidia, and Tesla may start moving into blockchain once they see clear regulations.
As of now, the current total value of the digital asset market stands at $3.80 trillion, with Bitcoin holding $2.80 trillion and 60% dominance after a 6.5% drop in the past day. Stablecoins currently hold nearly $150 billion in US Treasuries. US President Donald Trump's crypto adviser, Bo Hines, predicts the overall digital asset market might swell to between $15 trillion and $20 trillion in the coming years. The GENIUS Act, another federal push, could speed up stablecoin use and help tokens link more closely with banks and markets. Giving traditional assets a digital twin could open new funding channels, as market watchers suggest.
In summary, the CLARITY Act institutes a structured and transparent regulatory regime that delineates federal oversight, especially between SEC and CFTC, and establishes rigorous operational controls and compliance paths that together aim to nurture responsible growth in cryptocurrencies, stablecoins, and tokenized real-world assets while enhancing investor protections and market integrity in the U.S.
- With the CLARITY Act providing a clear regulatory framework, technology companies like Apple, Alphabet, Amazon, Microsoft, Meta, Nvidia, and Tesla might consider delving into blockchain technology.
- The CLARITY Act is expected to foster innovation in the realm of finance, particularly in the investing of stablecoins and tokenized real-world assets such as real estate or commodities, given its comprehensive approach to custody standards and clear statutory definitions.
