The Three-Layer Structure of Bitcoin, Ethereum, and Stablecoins: How the CLARITY Act Solidifies It
3-Point Summary
- Bitcoin, Ethereum, and stablecoins form a clear three-layer structure in the crypto asset market.
- The CLARITY Act formally recognizes and strengthens each of these layers within traditional finance.
- Bitcoin becomes the asset layer, Ethereum the financial infrastructure layer, and stablecoins the liquidity layer.
The CLARITY Act reinforces the three-layer structure of Bitcoin, Ethereum, and stablecoins—formally integrating them into traditional finance.
20‑Second Shorts Video (Updated August 20, 2026)
The CLARITY Act Locks In Crypto’s 3‑Layer System: Bitcoin, Ethereum, and Stablecoins Redefined #Bitcoin #Ethereum #Stablecoins #CLARITYAct
1st Layer: Bitcoin · 2nd Layer: Ethereum · 3rd Layer: Stablecoins
How the CLARITY Act Solidifies This Three-Layer Structure in Traditional Finance
At first glance, the crypto asset market looks complex, but its core can be described with a surprisingly simple three-layer structure.
Bitcoin operates on the 1st layer as “digital gold.” Once value is stored on the Bitcoin network, no one can stop it or arbitrarily change its supply. Yet, paradoxically, this perfectly formed asset layer cannot itself serve as the on-chain financial infrastructure that processes this asset. The financial infrastructure for Bitcoin inevitably depends on other blockchain networks.
The blockchain that provides this on-chain financial infrastructure is the 2nd layer, and Ethereum is the network that predominantly fulfills this role. What’s interesting is that ETH is both an “asset” and “financial infrastructure” at the same time. This dual nature often leads people to mistakenly see Bitcoin and Ethereum as competitors, when in reality they occupy different layers and functionally complement each other. ETH is the core asset of the financial infrastructure layer and, at the same time, an independent investment asset—so it is important to distinguish between ETH the asset and the Ethereum network.
Stablecoins are crypto assets but do not have their own standalone blockchain. They move by using the 2nd-layer infrastructure. Just as blood flows through the human body, stablecoins supply liquidity to the entire crypto asset market. In this article, we therefore treat stablecoins as the 3rd layer. In practice, even 1st-layer Bitcoin trades are routed through 3rd-layer stablecoins, and the 3rd layer in turn depends on the 2nd-layer Ethereum infrastructure.
These three layers do not compete with each other. Instead, each layer plays a distinct role while tightly depending on and reinforcing the others.
🧱 1st Layer: Bitcoin — “Asset Layer”
Bitcoin is a decentralized asset that runs purely on its own network. No one can stop Bitcoin, and no one can control its supply.
On this layer, Bitcoin serves as a Store of Value (SoV).
When we think about the future of crypto, the key question is not “who wins,” but “which layer does each asset belong to?” Bitcoin becomes collateral, and Ethereum becomes infrastructure. For a deeper discussion, see the previous article “Bitcoin-Free Ecosystem vs Ethereum-Free Ecosystem: The Future Opens Only When Both Coexist”.
- Digital gold
- Global reserve asset
- Strategic asset held by institutions and sovereigns
However, due to its high volatility, Bitcoin does not take on the role of payment, settlement, or financial infrastructure.
🔒 How the CLARITY Act Changes the Bitcoin Layer
Once Bitcoin is definitively classified as a commodity:
- Institutions, banks, and pension funds can hold Bitcoin more easily
- Regulatory uncertainty decreases → long-term investment conviction strengthens
- Price stability improves
The CLARITY Act effectively locks Bitcoin in as “digital gold” recognized by traditional finance.
🧱 2nd Layer: Ethereum — “Financial Infrastructure Layer”
Ethereum provides the core functions that a modern financial system needs.
Morgan Stanley’s report explains why Ethereum has become financial infrastructure by highlighting four key pillars. For a detailed breakdown, see the previous article “Morgan Stanley’s View of Ethereum: The Completed Financial Infrastructure”.
- Issuance and management of stablecoins
- Smart contract–based finance
- Tokenized asset issuance
- DEX, DeFi, and L2 ecosystems
- Global payment and settlement infrastructure
If Bitcoin is the asset, Ethereum is the financial system that moves that asset.
🧩 Why Is ETH Both an “Asset” and “Financial Infrastructure”?
✔ Native asset that powers the financial infrastructure
All on-chain activity on Ethereum consumes ETH gas.
✔ Staking asset that secures the network
ETH staking is central to block production, validation, and security.
✔ Financial asset used as collateral in DeFi
ETH is core collateral for lending, options, derivatives, and liquidity pools.
✔ Investment asset held by institutions
With the approval of ETH ETFs, ETH has clearly established itself as an institutional-grade investment asset.
ETH is the central asset of the financial infrastructure layer and, at the same time, an independent investment asset.
🧱 3rd Layer: Stablecoins — “Liquidity Layer”
Stablecoins are the blood vessels of the crypto asset market.
Once Apple Pay, Visa, Mastercard, and PayPal natively support on-chain payments, stablecoins will offer a user experience almost indistinguishable from existing payment methods. If stablecoins are formally recognized as official means of payment and banks/fintechs can issue them directly, adoption could accelerate explosively. For a deeper analysis, see the previous article “The Growth of Stablecoins and Their Share of M2: Analyzing the Potential to Disrupt the Payment Market”.
- 70–80% of BTC trading volume is BTC/USDT or BTC/USDC
- Most derivatives margin is denominated in stablecoins
- Institutions typically buy BTC via USD → USDC → BTC
- Stablecoins sit at the center of DEX liquidity pools
Stablecoins are issued on Ethereum, but their primary use case is overwhelmingly in the Bitcoin market.
Stablecoins are born on Ethereum and act as the liquidity engine that moves the Bitcoin market.
🔒 How the CLARITY Act Changes the Stablecoin Layer
- Banks and payment companies can use stablecoins officially
- Exchanges and institutions can trade with stablecoins without legal overhang
- Massive liquidity flows into the Bitcoin market
- On-chain payment and settlement connect directly to traditional finance
The CLARITY Act turns stablecoins into recognized payment and settlement instruments in traditional finance.
🧭 Final Takeaways
- Bitcoin is the asset layer — the CLARITY Act anchors Bitcoin as digital gold in traditional finance
- Ethereum is the financial infrastructure layer — ETH is the core asset of this layer
- Stablecoins are the liquidity layer — the CLARITY Act recognizes stablecoins as official payment and settlement tools
In the end, the CLARITY Act formally acknowledges and reinforces the three-layer structure of Bitcoin, Ethereum, and stablecoins within the traditional financial system.
The crypto asset market is now entering a new phase where decentralized technology and regulated finance are tightly intertwined.
Younchan Jung
Researcher exploring structural shifts in AI, blockchain, and the on‑chain economy.
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