U.S. lawmakers have introduced an amendment to the CLARITY Act aimed at refining digital asset regulation, potentially reshaping oversight for Ethereum and other cryptocurrencies. The legislative move seeks to clarify jurisdictional boundaries between the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC), addressing persistent ambiguities in classifying digital assets.
A central focus involves Ethereum’s regulatory status, which could be definitively categorized as either a commodity or security. This classification would significantly impact its trading environment and compliance requirements. Amid ongoing regulatory uncertainty, Ethereum has demonstrated notable price volatility, currently trading near $2,505 with a market capitalization exceeding $300 billion.
Former CFTC Chair Timothy Massad cautioned that using decentralization as a regulatory benchmark may introduce instability, citing its inherently fluid nature. The House Financial Services GOP Committee will review the amendment next, with stakeholders actively debating its potential effects on market innovation and investor safeguards.