The Digital Asset Market Clarity Act (CLARITY Act) is drawing major attention as U.S. lawmakers work to establish clearer rules for crypto regulation 🇺🇸
The bill proposes dividing oversight between the SEC and CFTC. Under this structure, the SEC would supervise “ancillary assets” in early development stages, while the CFTC would regulate “digital commodities” once blockchain networks become more decentralized. The aim is to remove regulatory uncertainty and create a more defined framework for the industry.
It also introduces key protections for the ecosystem, including recognition of self-custody rights, safeguards for decentralized finance protocols, 1:1 reserve requirements for stablecoins, and stricter anti-money laundering standards for intermediaries.
Sponsored by Chairman Tim Scott with bipartisan involvement, the CLARITY Act is approaching a critical markup vote on May 14. The proposal has received support from industry leaders at Coinbase and Ripple, while also facing criticism from Senator Elizabeth Warren and several banking groups.
With more than 100 amendments under consideration and active debate in Washington, the bill is being closely watched as expectations build for more structured and transparent crypto regulation in the U.S.