tl;dr
Bipartisan lawmakers introduced the Digital Asset Market Clarity Act, aiming to establish a unified federal regulatory framework for most cryptocurrencies. The 249-page bill defines key terms like “digital commodity” and “investment-contract asset,” amends existing securities and commodity laws, and...
Bipartisan lawmakers introduced the CLARITY Act, aiming to establish a unified federal framework for cryptocurrency regulation. The Act shifts oversight of crypto spot trading, brokerage, and custody to the Commodity Futures Trading Commission (CFTC), while clarifying the distinction between securities and commodities.
The Digital Asset Market Clarity Act, a comprehensive 249-page bill, defines key terms such as “digital commodity,” “investment-contract asset,” “mature blockchain system,” and “permitted payment stablecoin.” It amends existing securities and commodity laws to incorporate these definitions, aiming to reduce regulatory ambiguity.
The Act proposes a four-year safe harbor for primary token offerings if the underlying blockchain network reaches “mature” status and the issuer’s fundraising stays below $75 million in any 12-month period. Secondary trades outside the issuer are exempted from securities jurisdiction, addressing Howey test uncertainties. It also exempts bank-regulated payment stablecoins from commodity rules and integrates crypto intermediaries into Bank Secrecy Act requirements.
Under the Act, native crypto trading platforms must register provisionally with the CFTC within 180 days and join a self-regulatory organization. Alternative trading systems and broker-dealers handling only digital commodities would simply file a notice with the Securities and Exchange Commission (SEC) instead of obtaining a full license.
Bipartisan support is strong. House Financial Services Committee Chairman French Hill called it “long-overdue clarity for the digital asset ecosystem” aimed at maintaining the U.S.’s global leadership in digital assets. Agriculture Committee Chairman G.T. Thompson highlighted the bill’s certainty for entrepreneurs and markets, while other lawmakers praised its consumer protection, market clarity, and innovation focus.
The legislation also emphasizes safeguarding self-custody and transaction freedom. It is currently set for joint markups by the Financial Services and Agriculture committees, followed by committee votes before potential full House consideration.