Revised regulatory structure set to reshape oversight of digital currencies within the United States
The CLARITY Act: A Pivotal Step Towards Cryptocurrency Regulation in the US
The CLARITY Act, or the Digital Asset Market Clarity Act of 2025, is a proposed legislation that aims to bring clarity and structure to the cryptocurrency market in the United States. Passed by the House of Representatives on July 17, 2025, the Act is currently awaiting consideration in the Senate [1][5].
The Act seeks to reclassify cryptocurrencies into two categories:
- "Digital commodities," which would fall under the regulatory authority of the Commodity Futures Trading Commission (CFTC).
- "Restricted digital assets," which would remain under the jurisdiction of the Securities and Exchange Commission (SEC) [5].
This reclassification would transfer supervisory authority over digital commodities from the SEC to the CFTC, creating new registration requirements for digital commodity exchanges, brokers, and dealers, and extending the CFTC’s commodity pool regulations to spot digital assets [1].
The Act also introduces a provisional registration system while rules are finalized and clarifies exemptions for non-custodial DeFi participants [5]. Notably, cryptocurrencies like Bitcoin, Ethereum, and XRP would be classified as digital commodities, subject to the regulations and supervision of the CFTC.
The CLARITY Act is intended to provide greater legal security to developers and participants in the blockchain ecosystem, promote self-custody, and reduce risks associated with market manipulation and fraud, providing a stable framework for developers and users [6]. It also aims to increase confidence and transparency in the digital assets sphere in the U.S. [7].
However, the Senate has yet to pass this legislation. The Senate Banking Committee released its own crypto market structure draft on July 22, 2025, focusing mainly on SEC-related regulatory areas, while the Senate Agriculture Committee (with CFTC jurisdiction) is expected to release a complementary draft soon [2][4]. These Senate proposals will require reconciliation between the SEC and CFTC jurisdictions before any unified bill advances.
The CLARITY Act, introduced by Republicans in the House of Representatives under the leadership of Representative French Hill, is considered the most important cryptocurrency regulation presented in the United States so far [8]. Its passage and subsequent implementation could radically transform the regulatory landscape of cryptocurrencies, consolidating an environment conducive to trust, security, and technological development.
However, it's essential to note that investing in cryptoassets is not fully regulated and may not be suitable for retail investors due to its high volatility, and there is a risk of losing the entire amount invested. As the CLARITY Act moves through the Senate, it's crucial to stay informed about its progress and potential implications for the cryptocurrency market.
References:
- CoinDesk: The Clarity Act aims to clarify cryptocurrency regulation for the U.S.
- Bloomberg: Senate panel to unveil crypto market structure draft on Thursday.
- Cointelegraph: Clarity Act proposed legislation aims to provide greater clarity for developers and users.
- Yahoo Finance: Senate Ag committee to unveil crypto market structure draft soon.
- Investopedia: CLARITY Act.
- CoinDesk: Clarity Act passes House committee with bipartisan support.
- Cointelegraph: Clarity Act passes House committee with bipartisan support, aims to accelerate institutional adoption of digital assets.
- CoinDesk: Clarity Act passes House of Representatives to bring clarity to crypto markets.
- The CLARITY Act, a pivotal piece of legislation, aims to bring clarity and structure to the cryptocurrency market in the US, and it could significantly transform the regulatory landscape of blockchain technology within finance and business.
- Notably, the Act intends to increase confidence and transparency in the digital assets sphere, positioning politics to play a crucial role in the development and growth of the sector, as well as the technology behind it.
- As the Act moves through the Senate, it is essential for the general public to stay informed about its progress and potential implications on the finance, technology, and business sectors, as well as the volatility and risks associated with cryptocurrency investments.
