tl;dr
The Digital Asset Market Clarity Act has passed two key House committees and is headed for a full House vote. The bill aims to establish the Commodity Futures Trading Commission as the primary regulator for most digital assets, removing oversight from the SEC, though crypto issuers can still opt for...
The Digital Asset Market Clarity Act is making significant strides in the U.S. House of Representatives, advancing through two crucial committees and heading toward a full House vote. The bill proposes a major shift in crypto regulation, transferring primary oversight from the Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC), aiming to provide clearer and more specialized regulation for digital assets.
Passing the House Agriculture Committee with a bipartisan 47-6 vote and the House Financial Services Committee with a 32-19 vote, the legislation has garnered significant support while also facing notable opposition. The bill’s core provision establishes the CFTC as the main regulator for most crypto assets while allowing crypto issuers to opt for SEC registration when selling directly to institutional investors, preserving some flexibility within the framework.
Advocates, including House Financial Services Chair French Hill, emphasize the bill's potential to unlock innovation by providing a clear regulatory framework tailored to the unique characteristics of blockchain technology and digital assets. The Crypto Council for Innovation also hailed the advancement as a historic moment for the industry, highlighting the bill’s focus on clarifying regulator roles, protecting self-custody, and safeguarding consumers.
However, the bill has raised concerns among some Democrats who warn that it could weaken financial safeguards and create loopholes exploited by bad actors. Issues such as potential regulatory evasion by entities labeling themselves as decentralized finance projects and fears over insufficient oversight of presidential crypto ventures were points of contention. Republicans countered that oversight will depend on the functional aspects of platforms rather than labels or individual affiliations and rejected amendments aimed at additional restrictions.
Next, the bill's two committee-approved versions will be consolidated into a single text to be considered by the full House. If passed, the Digital Asset Market Clarity Act will reshape U.S. crypto regulation by formalizing the CFTC’s role as the primary crypto regulator, promising a lighter touch approach aimed at fostering innovation while navigating the complex challenges of this rapidly evolving sector.