The bipartisan CLARITY Act (H.R. 3633) has passed both the House Financial Services and Agriculture Committees (32-19 and 47-6, respectively), and will be voted on by the entire House next. This historic bill aims to resolve the long-standing jurisdictional dispute between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) regarding cryptocurrency regulation.
The CLARITY Act would give the CFTC primary authority over digital commodities and stablecoins. In the meantime, the SEC would supervise securities and enforce anti-fraud rules.
To encourage innovation, the measure defines digital assets clearly, establishes a provisional registration procedure for digital commodities enterprises, and exempts numerous decentralized finance (DeFi) operations from registration.
It also imposes investor safeguards such as disclosure requirements, fund segregation, and conflict-of-interest laws.
Despite widespread support, some MPs warn of potential loopholes and systemic concerns, while others argue that DeFi does not adequately address anti-money laundering. If passed, the CLARITY Act will create the first comprehensive federal framework for digital asset regulation in the United States.
