"Return of the Largest Market": CLARITY Act Emerges as Key Driver for Reshoring the US Crypto Industry

Attorney Bill Hughes pointed out that although the United States is the world's largest cryptocurrency market, an overwhelming portion of trading volume occurs on exchanges outside the US. According to an analysis released on May 9, 2026, the 'Digital Asset Market Clarity Act (CLARITY Act)' is expected to be a decisive catalyst for 'reshoring' this trading volume back into the United States.

This bill provides clear legal guidelines for cryptocurrency companies that moved their bases abroad due to regulatory uncertainty. Attorney Hughes emphasized that once the bill is implemented, the competitiveness of US-based exchanges will be strengthened and market transparency will be enhanced.

On July 17, 2025, the US House of Representatives passed the CLARITY Act (H.R. 3633) with an overwhelming result of 294 votes in favor and 134 against. With all 216 Republican members voting in favor and 78 Democrats joining in support through cross-voting, the bill secured strong legislative momentum.

The 'largest market' in the cryptocurrency field is seeing most of its volume handled externally rather than by US-based exchanges. — Attorney Bill Hughes

The bill, also known by its nickname 'Anti-CBDC Surveillance State Act,' clearly defines the jurisdictions of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). It is structured to facilitate the inflow of institutional funds by providing a legal path for altcoins to transition from the constraints of being securities to being commodities.

Registration and Operating Standards for Digital Commodity Exchanges

According to the regulations specified in the bill, Digital Commodity Exchanges (DCE) must complete formal registration with the SEC and CFTC to operate. Exchanges can only list assets certified as 'mature blockchains,' and for assets that have not reached the maturity stage, issuers must comply with strict reporting obligations.

• Establishment of a mandatory registration and oversight system for Digital Commodity Exchanges with the SEC and CFTC
• Preparation of listing standards and certification procedures for mature blockchain assets
• Allowing legal trading of stablecoins through broker-dealers and Alternative Trading Systems (ATS)

Market data is already responding positively to these institutional changes. During the month of April 2026, $1.97 billion flowed into US Bitcoin spot ETFs, completely reversing the outflow trend seen in late 2025 and early 2026.

Ethereum ETFs also recorded an inflow of $355.98 million last April, confirming strong confidence from institutional investors alongside Bitcoin. This flow of funds is interpreted as reflecting market expectations for the regulatory clarity that the CLARITY Act will bring.

However, provisions for protecting Decentralized Finance (DeFi) developers and the handling of interest income from stablecoins remain at the center of controversy. Some experts advise a cautious approach, pointing out that these details could become sparks for legal disputes during the future regulatory enforcement process.

After undergoing language revisions by the Senate Banking Committee in March 2026, the bill is scheduled for full implementation in early 2027 upon the expiration of an 18-month grace period. The industry is focusing on refining systems for regulatory compliance during the remaining period, preparing for a full-scale return to the US market.