The Digital Asset Market Clarity Act, or CLARITY Act, cleared the Senate Banking Committee on a 15-9 vote on May 14. The bill would split crypto oversight between the SEC and the CFTC — and it now heads to the full Senate floor. Grayscale, the largest digital asset manager, has already mapped out which blockchains stand to gain the most if the legislation passes.
What the CLARITY Act does
The CLARITY Act is the most ambitious attempt yet to define which agency regulates what in crypto. Under the bill, the SEC would oversee digital assets that function as securities, while the CFTC would get jurisdiction over those that behave more like commodities. It's a line industry has begged for, but the fight isn't over. The bill needs 60 votes to pass the Senate — which means Democratic support is still an open question.
Grayscale's four blockchain picks
This week Grayscale published its post-CLARITY playbook. The firm named Ethereum, Solana, BNB Chain, and Canton Network as the four blockchains best placed to absorb institutional flows if the law goes through. Ethereum leads for assets with full on-chain functionality, with BNB Chain and Solana in second and third. The same three networks also rank highest by stablecoin supply and DeFi total value locked, according to Grayscale's data.
Canton Network's institutional angle
Canton Network is the odd one out — a privacy-focused Layer-1 built specifically for regulated institutions. It's not your typical public chain. Canton hosts DTCC's tokenized U.S. Treasury pilot, and J.P. Morgan, HSBC, and Visa are among its validators. The network claims $350 billion settles daily on it, with over $6 trillion in tokenized real-world assets already in production. A recent Canton Network ETF launch gave retail investors their first direct exposure to the token.
The altcoins Grayscale is watching
Grayscale didn't stop at the top four. The firm also flagged Avalanche, Base, Arbitrum, Hyperliquid, and Tron as altcoins set to benefit from the new regulatory framework. These networks have strong developer ecosystems or niche use cases — like Tron's dominance in stablecoin transfers — that could attract institutional capital once the rules are clear.
What happens next
The full Senate floor vote is the next big hurdle. The CLARITY Act needs 60 votes to pass, and the bill's path depends on how much Democratic support it can pull. If it clears the Senate, the House would still need to take it up. The clock is ticking on the 2026 legislative calendar, and the crypto industry is watching every step.
