Former CFTC Chair Chris Giancarlo believes the United States is at a crucial turning point for crypto regulation, with the Clarity Act emerging as one of the most important pieces of legislation for the industry.
Speaking on Scott Melker’s The Wolf Of All Streets Podcast, Giancarlo stressed that the biggest issue facing the crypto market today is not innovation or adoption, but the lack of clear regulatory rules.
According to him, the Clarity Act aims to define how digital assets are regulated by clearly separating oversight responsibilities between the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission.
“If nothing else, we need to clarify the rules, the guardrails between the CFTC and the SEC,” Giancarlo explained during the discussion.
Where the Clarity Act Stands Now
The crypto market structure bill has already cleared an important milestone in Washington. The Clarity Act passed the U.S. House of Representatives in July 2025 and has now been referred to the U.S. Senate Committee on Banking, Housing, and Urban Affairs.
If the Senate approves the legislation, it will then be sent to Donald Trump for final approval and signature.
And if Congress ultimately fails to pass the legislation, Giancarlo believes regulators could step in to fill the gap temporarily. He pointed to leaders such as Paul Atkins at the SEC and Mike Selig at the CFTC as figures who may attempt to develop workable regulatory frameworks.
Giancarlo described this stage as the most challenging part of the process, noting that defining market structure is far more complex than passing basic crypto-related legislation.
Hence, without legislation like the Clarity Act, Giancarlo believes institutional adoption could remain limited, making regulatory clarity one of the most critical steps for the future of crypto in the United States.
Giancarlo’s Odds of Bill Passing
Despite the political hurdles, Giancarlo remains cautiously optimistic about the bill’s chances in Congress.
“My betting odds right now are 60–40 that it gets done,” he said.
He emphasized that the legislation is necessary to provide the long-term legal framework that the digital asset industry needs to expand responsibly within the U.S. financial system.
Mostly, Giancarlo blamed the Clarity Act has faced delays due to political divisions and competing interests across Washington.
According to him, political conflicts have complicated efforts to build consensus around how crypto markets should be structured and regulated.
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FAQs
The Clarity Act is a proposed U.S. law designed to clarify how digital assets are regulated by dividing oversight between the SEC and the CFTC.
The Clarity Act could bring clear rules for digital assets, reduce regulatory confusion, and help attract institutional investors to the U.S. crypto market.
If approved, the law could create a stable regulatory framework, improve investor confidence, and support long-term growth of the U.S. digital asset industry.
Former CFTC Chair Chris Giancarlo estimates a 60–40 chance of passage, though political debates in Washington may still influence its final outcome.
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