U.S. legislators have proposed the CLARITY Act, a bipartisan bill designed to create a clear regulatory structure for digital assets by distinguishing token classifications and strengthening consumer safeguards. The framework designates the Commodity Futures Trading Commission (CFTC) as the primary regulator for digital commodities while maintaining the Securities and Exchange Commission’s (SEC) authority over crypto securities, aiming to resolve longstanding jurisdictional ambiguities in the sector.
Notably, the legislation grants exemptions for decentralized finance (DeFi) protocols from mandatory registration requirements and explicitly protects users’ rights to conduct peer-to-peer transactions and maintain self-custodied wallets. This carve-out intends to preserve innovation in decentralized ecosystems while imposing regulatory obligations primarily on centralized intermediaries.
Industry stakeholders have welcomed the regulatory clarity but raise concerns about insufficient attention to blockchain infrastructure providers and protocol developers, prompting calls for targeted amendments. In response, the Blockchain Regulatory Certainty Act (BRCA) has been introduced as a complementary amendment endorsed by eight major trade associations, seeking to prevent disproportionate regulatory burdens on emerging Web3 technologies.
Critical perspectives caution against potential shortcomings, with former CFTC Chairman Tim Massad warning that the bill’s emphasis on technological novelty risks undermining fundamental investor protection and market integrity objectives. These deliberations occur as lawmakers refine the proposal ahead of committee review.