Too optimistic. If the Clarity Act passes, it could indeed improve regulatory clarity in the U.S. crypto market, reduce some gray-area manipulation and compliance risks, and promote further institutionalization of crypto assets. But it’s not going to eliminate market volatility or prevent systemic pullbacks—at most, it’ll make the crypto market closer to traditional financial markets. Also, even if it does pass, it can only regulate exchanges that “serve U.S. users.” For exchanges that don’t cater to U.S. users, the Clarity Act won’t have any impact, nor will they fall under CFTC regulation. And for exchanges already under regulation, this isn’t really a big deal. In fact, the most important aspect of the Clarity Act is that it clarifies the jurisdiction between the SEC and the CFTC. Previously, the SEC could take a one-size-fits-all approach and claim that ‘everything is a security.’ After the Clarity Act passes, that won’t be the case anymore—there will be a clear distinction.