The CLARITY Act's approval by the Senate Banking Committee initially triggered a sharp rally in DeFi tokens such as AAVE, ONDO, ENA, and UNI. The legislation, which aims to clarify regulatory boundaries between the SEC and CFTC, was passed with a 15-9 vote on May 14. This led to immediate gains, with ONDO rising 4.6%, ENA up 3.6%, and AAVE and UNI increasing by 1.9% and 1.7%, respectively. However, the rally was short-lived as the market quickly shifted to profit-taking, causing these tokens to fall 3% to 7% below their pre-vote levels within 24 hours. Analysts described the event as a "buy the rumor, sell the news" scenario, noting that the market had largely anticipated the bill's approval. Despite the pullback, the CLARITY Act is seen as a positive step for crypto regulation, potentially influencing future DeFi market movements as the White House aims for a final signature by July 4.