Key Takeaways
- The CLARITY Act advances with bipartisan support.
- The SEC and CFTC roles are clearly defined in the bill.
- Critics express concerns about potential regulatory confusion.
The Digital Asset Market Clarity Act, known as H.R. 3633, has moved forward in the U.S. legislative process with bipartisan backing.
The bill, which seeks to end jurisdictional confusion over digital assets, passed the House Financial Services Committee by a 32-19 vote and the House Agriculture Committee by 47-6.
The legislation proposes a clear division of oversight between the SEC and the CFTC, defining digital commodities as assets linked to blockchain systems, which would fall under CFTC’s purview. The SEC would continue to oversee digital commodities offered as investment contracts.
Key support
The act introduces a new classification for “mature blockchain systems,” networks not controlled by any single entity, potentially exempting them from certain SEC requirements.
It also protects the right to self-custody and the development of non-custodial software.
Representative French Hill supports the bill as a move away from “regulation by enforcement” toward clearer rules. I
ndustry groups, including the Crypto Council for Innovation, see it as a pivotal step for the digital asset sector.
Criticisms and Concerns
Despite support, concerns persist.
Former CFTC Chair Timothy Massad warns the act might cause confusion, as its definition of “digital commodity” is too narrow.
Some Democratic lawmakers worry about reduced financial safeguards and potential regulatory loopholes.
The bill will now be consolidated before a full House vote, representing a significant step in shaping U.S. digital asset regulation.
