The CLARITY Act cleared the Senate Banking Committee on Thursday in a 15-9 vote, marking the most important step yet for the most important crypto regulation bill in US history. Markets responded immediately. Bitcoin climbed to $81,449, Ethereum rose to $2,288, and XRP surged 4.51% to $1.49, leading major altcoins higher on the news.
Crypto analyst Michaël van de Poppe broke down what comes next and what it actually means for prices across the major digital assets.
The Path Forward Is Not Simple
Van de Poppe opened up about the procedural challenges still ahead. The bill now moves to the full Senate where it needs 60 votes to pass. Only two Democrats joined Republicans on the committee vote, which means significant outreach across the aisle is still required.
From there it heads to House reconciliation, which should be largely a formality since the House already approved an earlier version of the bill. After presidential signature, agency rulemaking begins, a process that typically takes one to two years before regulations actually take effect.
The GENIUS Act for stablecoins followed exactly this timeline. The stablecoin market has rocketed since its approval, providing a clear template for what CLARITY Act implementation could mean for the broader crypto market.
The Real Impact on Bitcoin, Ethereum and XRP
Van de Poppe was clear that this is not going to trigger an immediate vertical move higher. The market does not work that way. But the structural shift is significant.
For Bitcoin and Ethereum, the bill cements their status as digital commodities under CFTC jurisdiction, removing the regulatory overhang that has kept some institutional capital sidelined for years. For XRP, the legislation does something arguably more significant. It codifies Judge Torres’ ruling into permanent federal law, making the question of whether XRP is a security legally settled rather than subject to future SEC interpretation.
For altcoins broadly, the bill creates clear classification rules. Most are likely to be categorised as digital commodities rather than securities, which van de Poppe described as positive for the entire sector.
Three Structural Catalysts
Beyond price action, van de Poppe identified three longer-term shifts the bill enables:
- DeFi gains formal legal protections, opening the door for institutional developers and traditional finance firms to build on-chain
- Pension funds and large allocators can now formally allocate capital to digital assets within a regulated framework
- The window for altcoin returns is opening as institutional clarity arrives, with van de Poppe saying he remains fully allocated to altcoins in his personal portfolio
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