The CLARITY Act is moving faster than most people expected and the stakes attached to it are higher than most people realise. Bloomberg senior commodity strategist Mike McGlone delivered a verdict on the legislation that cuts against the celebratory tone dominating crypto circles right now.
McGlone’s Warning: Most Cryptos Go to Zero
Asked whether the CLARITY Act deserves its billing as the biggest regulatory catalyst in crypto history, McGlone did not dispute the significance of the legislation. But his answer reframes what that significance actually means for the majority of digital assets.
“Great for stablecoins and tokenization,” he said, “which means most of the millions of cryptos tracking nothing should drop toward zero.”
The CLARITY Act, in McGlone’s reading, does not lift all boats. It legitimises the assets with genuine utility, primarily stablecoins and tokenised real-world assets, while accelerating the obsolescence of the thousands of tokens that exist purely as speculative instruments with no underlying economic function.
The Legislative Moment
The bill itself is moving with unusual urgency. The White House has set a July 4 target for passage, and lawmakers on both sides of the aisle appear to be taking that deadline seriously. Representative Dusty Johnson said that the House is ready to move quickly. “If the Senate can get this done in the next few weeks, we will move fast,” he said.
Senator Bill Hagerty, who authored the $GENIUS Act covering stablecoins, appeared on Fox Business to make the case directly. $GENIUS unlocked stablecoin innovation, he argued, and CLARITY does the same for the entire digital asset market. Hagerty also stated that the new digital dollar framework being developed will retain the global reserve status of the U.S. dollar, a signal with significant implications for dollar-backed stablecoins including RLUSD.
The bill must still navigate final negotiations over language and ethics provisions before reaching a floor vote, and only 16 legislative days remain before the August recess.
