Ethereum rises 1.8% as CLARITY Act vote set for next week

Ether rose 1.82% to $3,480.12 after US House Administration Committee Chair Bryan Steil said the CLARITY Act could pass next week, a move that would classify the second-largest token as a digital commodity.

Steil, who chairs the House Administration Committee, said the CLARITY Act could come to a vote as early as next week, according to a statement. The bill would formally designate Ether as a digital commodity under US law.

The legislation addresses a long-standing ambiguity over whether Ether is a security or a commodity — a distinction that determines whether the SEC or the CFTC has primary oversight. The CLARITY Act would resolve that question by statute, giving Ether the same legal treatment as other digital commodities. The bill's passage could bolster both retail and institutional demand by removing a key regulatory overhang, according to the statement.

A vote next week would represent one of the most consequential US crypto regulatory developments in recent years. If enacted, the bill could remove the regulatory uncertainty that has weighed on Ether's institutional adoption, potentially opening the door for broader participation by asset managers and traditional financial firms.

The classification of Ether has been a central question in US crypto regulation. The SEC has declined to take a definitive position on the token's legal status, while CFTC officials have publicly stated that Ether is a commodity. The CLARITY Act would resolve that jurisdictional dispute by statute, creating a clear legal framework for the token.

The bill's passage would mark a shift in how the US treats digital assets, moving Ether from a regulatory gray area into a defined legal framework under CFTC oversight. That change could affect everything from how exchanges list the token to how asset managers structure investment products tied to it. Spot Ether exchange-traded funds, which began trading in 2024, could see expanded participation from institutional investors who have been waiting for clearer regulatory guidance.

The legislation's timing follows years of debate in Washington over how to regulate digital assets. The CLARITY Act represents one of several congressional efforts to establish clear jurisdictional boundaries between the SEC and CFTC for crypto markets.

The bill's path through Congress remains uncertain. While it has bipartisan support, some lawmakers have raised concerns about investor protections. If passed by the House, the legislation would move to the Senate.

This article is for informational purposes only and does not constitute investment advice.