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What is the CLARITY Act?

Officially, this law is known as the Digital Asset Market Transparency Act of 2025, and it is a 236-page bill making its way through Congress.

It is the first serious attempt to establish a clear national rulebook for cryptocurrencies in the United States. The bill was introduced by Congressman French Hill, and it has rare bipartisan support from both Republicans and Democrats, indicating that Washington recognizes this has been long overdue.

At its core, the CLARITY Act answers a simple yet critically important question: who regulates what?

Currently, cryptocurrency companies in the United States are stuck in a state of ambiguity. Is your token a security or a commodity? Is it subject to regulation by the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), or both? The CLARITY Act changes that.

Instead of leaving things open to interpretation, the law establishes clear legal definitions for various types of digital assets. Based on these definitions, it designates the appropriate regulatory authority. It also establishes a framework, achieves consistency, and, most importantly, enables predictability.

For cryptocurrencies to grow, trust and clarity are not optional. This law may finally achieve both.