The Digital Asset Market Clarity Act cleared the Senate Banking Committee on a 15-9 vote on May 14, marking a significant milestone in crypto regulatory framework development. According to reports from Grayscale, the bill would split crypto oversight between the SEC and CFTC, and now heads to the full Senate floor for consideration. The legislation represents the first major regulatory hurdle cleared, with 60 votes needed for final passage and the bill's success dependent on Democratic support. However, the bill stalled in April over stablecoin yield rules, so don't assume the final text matches what's been read, as reported by The Market Analogist.
Asset manager Grayscale has identified four blockchains best positioned to absorb institutional flows following CLARITY Act passage. The firm's picks include Ethereum (ETH) leading for assets with full on-chain functionality, followed by BNB Chain and Solana (SOL) in second and third place. As reported by BeInCrypto, Grayscale views that greater regulatory clarity would be likely to concentrate funds in networks with deeper on-chain finance foundations. These same three networks rank highest by stablecoin supply and DeFi total value locked, positioning them advantageously for regulated capital flows. However, The Market Analogist notes that Grayscale's beneficiary list almost entirely overlaps with the 16-token set of digital commodities jointly named by the SEC and CFTC in March 2026, which includes Bitcoin, Ethereum, Solana, XRP, Cardano, Hedera, Chainlink, Polkadot, Stellar, Tezos, and Dogecoin. This classification creates a product map rather than token selection, as the firm wants as many tokens as possible classified as commodities where ETFs are easiest to build and sell.
Canton Network (CC) distinguishes itself as the privacy-focused Layer-1 built specifically for regulated institutions. According to Grayscale, a recent Canton Network ETF launch provided retail investors exposure to the network. The platform now hosts DTCC's tokenized U.S. Treasury pilot with J.P. Morgan, HSBC, and Visa among its validators. As reported by Canton Network, $350 billion settles daily on the platform, with over $6 trillion in tokenized real-world assets and major institutions building in production. Grayscale also mentioned Avalanche, Base, Arbitrum, Hyperliquid and Tron as altcoins that could benefit from the new regulatory framework.
The CLARITY Act creates a two-track system for digital assets, splitting them into digital commodities under CFTC oversight and ancillary assets under SEC's Regulation Crypto regime. According to The Market Analogist, banks supported advancing the bill out of the Senate Banking Committee, with the Banking Trades association calling it an important step. However, the bill restricts passive stablecoin yields in ways that favor traditional banking intermediation, causing Coinbase to reportedly consider withdrawing its support over those provisions. The stablecoin yield provisions will be fought hardest during Senate floor debate, with the exact definition of "ancillary asset" being the boundary line where actual money moves between commodity and security-adjacent classifications. The full Senate vote is expected to be the next watershed to gauge how quickly policy change leads to actual fund flows.
