In July 2025, the U.S. House of Representatives passed the Digital Asset Market Clarity Act (CLARITY Act) as part of 'Crypto Week', marking an important step toward regulating the cryptocurrency market. The bill, supported by 294 votes to 134, aims to create a clear regulatory framework for digital assets, eliminating the uncertainty that has hindered innovation for years.
The CLARITY Act delineates the powers between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Most crypto assets, including tokens on decentralized blockchains, are classified as 'digital commodities' under the CFTC's oversight, while the SEC retains control over assets that exhibit characteristics of securities. This is expected to reduce the number of lawsuits due to unclear regulation.
The bill also streamlines the process of raising capital for crypto projects, allowing token sales provided they are decentralized within 12 months. Stablecoins received separate status, facilitating their integration into the financial system.
Despite support, including from 78 Democrats, critics, including Congresswoman Maxine Waters, argue that the law weakens investor protections and could facilitate fraud. Analysts, however, predict that clear rules will enhance trust among institutional investors and foster the development of the crypto market.
The CLARITY Act still needs to pass the Senate, but its passage could make the U.S. a leader in crypto innovation, enhancing the country's competitiveness in the global market.
