A major turning point is about to occur in the cryptocurrency market in the U.S.: The U.S. Congress has officially announced the Digital Asset Market Clarity (CLARITY) Act, aimed at reshaping the entire regulatory framework for digital assets – highlighting the removal of the SEC's (Securities and Exchange Commission) control over most types of crypto.



CLARITY Act: Changing the landscape of crypto regulation in the U.S.


The bill #CLARITYAct was announced on May 16 with the goal of redefining digital asset categories and transferring oversight of most of the crypto market to the U.S. Commodity Futures Trading Commission (CFTC), instead of the SEC. This is expected to help reduce the legal barriers that have been contentious for many years.


Specifically, digital assets “associated with a blockchain” and serving to “transfer value between users” will be classified as digital commodities. This includes most popular tokens such as Ethereum, Solana, Cardano, XRP, Dogecoin, and even governance tokens like WLFI – a token backed by President Donald Trump.



SEC is out of the game – Crypto in the hands of CFTC


If the bill is passed, the SEC will no longer be the primary regulatory agency for most of the crypto market, as oversight will shift to #CFTC – which has a more 'lenient' and less intrusive approach to financial products.


Lawmakers believe the bill will “protect consumers from fraud,” while also “unleashing the creative potential” of the blockchain industry in the U.S. The bill has bipartisan support, including three Democratic senators serving as co-sponsors.



New definition: 'Mature' blockchain – but not mandatory


The bill also introduces a new concept of 'mature blockchain system' – a mature blockchain system. To achieve this standard, a blockchain must meet criteria such as open source, automation, not being controlled by an individual or organization, and no one holding more than 20% of the tokens.


However, achieving 'mature' certification is not mandatory for a token to be traded. In fact, most projects that do not need to meet this criterion can still issue tokens and trade legally. This raises the question: is there enough motivation for issuers to strive for 'mature' status, given the limited benefits?



There are still many ambiguities


Although the CLARITY Act provides clearer direction for the crypto market in the U.S., there are still many loopholes. For example, the bill does not clarify the mechanism for determining whether a token is a security or a commodity if it has mixed characteristics. This could lead to protracted legal disputes, especially when revising securities laws that have existed since the Great Depression of 1929.


Additionally, some experts warn that amending fundamental legal definitions could have a ripple effect on traditional financial markets like Wall Street if not handled carefully.



What will happen next?


The CLARITY Act will be sent to the U.S. House of Representatives Financial Services Committee for review and to mark up the entire content on June 10. If passed, this will be the largest turning point in crypto regulation policy in the U.S., ushering in a new era with a larger role for the CFTC and a more favorable legal environment for digital assets.



Connect with the crypto market and Binance users


If the CLARITY Act is passed, major tokens like ETH, SOL, or XRP – which are central to many investors on Binance – will have a clearer legal framework to operate in the U.S. This could encourage institutional money to flow back into the market, creating strong growth leverage for large-cap tokens.



⚠️ Risk warning:


Investing in digital assets always carries high risk and is not suitable for everyone. This article does not constitute investment advice. Always conduct thorough research and consider carefully before making financial decisions. #anhbacong