The CLARITY Act is progressing through the U.S. House of Representatives with bipartisan support, aiming to resolve regulatory ambiguities surrounding digital assets by clearly delineating oversight between the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC).
The legislation establishes a framework to classify cryptocurrencies as either securities or commodities based on asset attributes and usage. It introduces a formal registration process for issuers to determine their primary regulator, replacing the current environment of regulatory uncertainty.
Demonstrating legislative momentum, the bill recently cleared the House Financial Services Committee with a 32-19 vote. This bipartisan endorsement reflects growing recognition of the need for predictable regulatory parameters in the cryptocurrency sector.
Proponents argue the Act will reduce compliance risks, foster innovation, and attract institutional investment by creating defined jurisdictional boundaries. If enacted, the legislation could enhance market liquidity and stability while implementing tailored consumer protection measures through appropriate agency oversight.