The CLARITY Act (Digital Asset Market Clarity Act of 2025) would establish formal regulatory rules for crypto trading in the US, potentially reshoring billions in volume currently dominated by offshore exchanges. Bill Hughes, Senior Counsel and Director of Global Regulatory Matters at Consensys, argues that explicit regulatory clarity would incentivize crypto projects and traders to operate domestically rather than on platforms like Binance, which controls 38% of the top 10 global exchange market share. The US Senate Banking Committee is scheduled to mark up the bill in mid-May, but passage faces a narrow window before August recess and November midterm elections.
Why US Exchanges Lag Behind Global Rivals
The US currently captures only a fraction of global crypto trading despite housing the world’s largest fiat on-ramp. Between July 2024 and June 2025, the US dollar accounted for over $2.4 trillion in cryptocurrency volume globally. Yet Coinbase, the largest US-based exchange, holds just 6.1% market share among the top 10 platforms, while Binance commands 38%. Hughes contends this disparity stems from regulatory uncertainty. Without clear rules defining which tokens are securities, how exchanges should operate, or what compliance obligations apply, US projects and traders gravitate toward offshore venues where rules are either lax or non-existent. The CLARITY Act would codify digital asset definitions and establish transparent oversight standards designed to level the playing field.
Political Momentum and Polling Support
A HarrisX poll of 2,028 registered US voters conducted in May 2026 found 52% support for the CLARITY Act, with backing crossing party lines. This bipartisan appeal provides a rare opening for crypto legislation in Congress. However, the timeline remains precarious. Hughes emphasized that “the Senate has only weeks to move the bill before the August recess, after which the midterm election calendar takes over.” Brad Garlinghouse, CEO of Ripple Labs, acknowledged the urgency: “Despite recent progress on the bill, its passage into law still isn’t guaranteed.” If the bill stalls before August, advocates warn the next realistic opportunity for passage could be 2030.
Reshoring as Regulatory Strategy
The premise underlying CLARITY is straightforward: regulatory clarity attracts legitimate capital and infrastructure. Proponents argue that without it, US crypto talent and venture funding will continue flowing to jurisdictions like Singapore, Dubai, and the Cayman Islands. Establishing formal rules would signal to builders and traders that the US offers a stable, long-term operating environment. This reshoring argument appeals to both crypto advocates seeking legitimacy and policymakers concerned about US competitiveness in digital finance. Coinbase, Ripple, and Consensys have all signaled support, though the bill’s specific provisions remain subject to Senate markup negotiations.
Critical Window Closing
The Senate Banking Committee markup is set for mid-May, with only weeks remaining before the August recess interrupts legislative activity. Midterm elections in November will further constrain floor time and political appetite for contentious votes. If CLARITY advances past committee, passage would require floor votes in both chambers within a compressed timeframe. The convergence of these deadlines has created urgency among sponsors and crypto firms backing the bill. Failure to move it before summer would reset the legislative clock to 2027 at earliest, leaving the current structure intact: most US crypto activity routed through offshore exchanges operating beyond SEC and CFTC oversight.
