A newly introduced legislative proposal, the CLARITY Act, seeks to restructure U.S. cryptocurrency oversight by shifting primary regulatory authority from the Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC). The bill establishes a multi-agency framework to redefine digital asset regulation, with most cryptocurrencies classified as ‘ancillary’ – thereby exempting them from securities laws by default.
The legislation specifically curtails the SEC’s jurisdictional reach over digital assets while expanding the CFTC’s mandate to handle enforcement complexities. This reclassification fundamentally alters how cryptocurrencies are treated under U.S. law, moving them away from traditional securities frameworks.
Additional provisions establish anti-money laundering (AML) standards, clarify custody rights for digital assets, and introduce systemic risk mitigation protocols. Prominent supporter Senator Cynthia Lummis endorsed the bill, stating it aligns with broader efforts to position the United States as a global leader in cryptocurrency innovation and adoption by providing regulatory clarity for market participants.