#CryptoClarityAct What is the CLARITY Act?
The House of Representatives approved it on July 17, 2025, with a vote of 294–134, sending it to the Senate for consideration.
Designed to resolve the long-standing "territorial war" between the SEC and CFTC over who regulates which digital assets.
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📌 Key Provisions
1. Definition of Digital Commodities
Assets whose value is "intrinsically linked" to the use of blockchain on a "mature" and decentralized network will be classified as digital commodities, regulated by the CFTC.
2. Regulatory Division
The CFTC oversees the spot market for mature blockchain assets (e.g., Bitcoin, certain utility tokens).
The SEC retains authority over digital securities and initial asset sales, although the CLARITY Act provides limited exemptions from SEC registration for fundraising under certain conditions.
3. Exemptions & Transition Path
Tokens may change classification—from securities to commodities—as the blockchain matures and decentralizes over time.
4. Compliance Requirements
Digital commodity exchanges, brokers, and dealers are subject to the Bank Secrecy Act rules, trade monitoring, recordkeeping, and other oversight obligations.
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🌐 Importance & Context
Aims to provide clear and objective criteria for classifying digital assets—something that SEC enforcement actions have left unclear for many crypto projects.
Regarded as essential for market certainty: knowing in advance whether an asset is regulated by the CFTC or SEC simplifies legal and operational planning.
Critics argue that this largely codifies existing business models in the crypto industry and may allow for weaker regulatory standards—especially concerning internal conflicts of interest and customer protections.
