CLARITY Act explained: What it means for Crypto Week and beyond

Key Points

1. The CLARITY Act (Digital Asset Market Structure Clarity Act) seeks to resolve the regulatory uncertainty over whether the SEC or CFTC should govern crypto in the U.S.

2. Introduced by Representative French Hill on May 29, 2025, the act promotes legal certainty in secondary market trading and offers streamlined compliance paths for crypto projects.

3. Critics, including SEC Commissioner Hester Peirce and Democratic leaders, argue the act weakens SEC oversight and may reduce investor protections.

4. The act is part of 'Crypto Week,' a legislative push focusing on digital asset policy, and has already passed key House committees.

5. Despite bipartisan support for some crypto bills, such as the GENIUS Act, opposition remains, highlighting ongoing political divisions over crypto regulation.