Asset manager Grayscale says the small group of blockchains that already dominate decentralized finance (DeFi) and token assets, such as Ethereum, Solana, BNB Chain and Canton Network, are better positioned to absorb the first wave of institutional capital once the US passes the CLARITY Act, its long-promised crypto rulebook.
The Clarity Act received approval from the Senate Banking Committee by a vote of 15-9 on May 14. Now the law requires a full vote in the Senate, reconciliation in the House of Representatives, and a presidential signature.
However, the current calendar poses another obstacle. In an article dated May 21, Cryptopolitan reported That bill will now compete for floor time in June with reconciliation, the Foreign Intelligence Surveillance Act, and a housing bill that the House passed this week.
Which networks does Grayscale say will absorb the first wave of institutional capital?
Ethereum currently leads the tokenized assets with full on-chain functionality, followed by BNB Chain and Solana.
The Canton Network has also made a name for itself as a dominant institutional venue. According to shades of gray earlier Big coding reportCanton leads all blockchains in terms of total on-chain capital with more than $348 billion in token asset value, which is based on DTCC’s selection of the network under the SEC’s no-action letter framework.
The same blockchains also stand out in terms of supply and transaction volume when it comes to stablecoins. The current TVL in DeFi is there $82.08 billionEthereum, Solana, and BNB Chain are responsible for the bulk of it. They also perform in application activities.
Grayscale is highlighted A list of secondary platforms, including Avalanche, the Ethereum Layer 2 Base and Arbitrum networks, the perpetual coin-focused Hyperliquid, and the stablecoin-focused Tron as potential beneficiaries.
Zach Bandel, head of research at Grayscale, noted that although Bitcoin does not natively support smart contracts and has a more limited Layer 2 ecosystem, it will still benefit from regulatory clarity as the industry’s safest asset and leading collateral.
When will the Clarity Act be passed, and what could hold it back?
According to Crypto in America podcast host Eleanor Terrett, “The reality of whether the Senate will be able to get two major pieces of legislation done amid time constraints and competing priorities is beginning to set in, and the question of whether one will inevitably slide into July is now being asked.”
She pointed out that there are four working weeks in June and three in July before the August holiday.
Senator Cynthia Lummis described the June vote as perhaps too optimistic.
DeFi could get regulatory support as well
While these deliberations are ongoing, the SEC has not waited. On March 17, the agency issued a joint explanation With the Commodity Futures Trading Commission (CFTC) establishing a consistent definition and classification across digital commodities, collectibles, instruments, stablecoins and digital securities.
It also explained how non-security crypto assets can become or cease to be subject to an investment contract, while also addressing airdrops, protocol mining, storage, and packaging of non-security assets.
Securities and Exchange Commission Chairman Paul S. “This effort is an important bridge for entrepreneurs and investors as Congress works to advance bipartisan market structure legislation, which I look forward to implementing with Chairman Selig in the near future,” said Atkins.
The DeFi space is also making an effort to clarify regulations. like Cryptopolitan reported In April, the Decentralized Education Fund (DEF) and 35 other signatories urged the Securities and Exchange Commission (SEC) to upgrade their capabilities. Orientation of employees DeFi interfaces are so enshrined in law that they cannot be undone once a new system emerges.
As it stands, the Directive is merely an interim staff statement which will be deemed withdrawn five years from the date of its publication unless the Commission stipulates otherwise or makes it a rule.
A staff statement issued by the SEC’s Division of Trading and Markets on April 13 clarifies that certain cryptocurrency trading interface operators are exempt from registering as broker-dealers.
