Quick Summary
- The CLARITY Act proposes shifting crypto oversight from SEC to CFTC.
- Most digital assets to be reclassified as digital commodities.
- Introduces a “mature blockchain system” status with relaxed rules.
- Bipartisan support with a full committee markup scheduled for June 10.
- Aims to provide legal clarity and consistent regulation for the U.S. crypto market.
Introduction: A New Era in Crypto Oversight
The Digital Asset Market Structure Clarity Act (CLARITY Act) is poised to redefine how the United States regulates cryptocurrencies. Unveiled by House lawmakers, the bill seeks to shift regulatory authority from the Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC). This bold legislative step reflects the growing need for transparent, consistent regulation in the rapidly evolving crypto space.
From SEC to CFTC: The Regulatory Shift
At its core, the CLARITY Act proposes amending existing securities laws to exclude most digital assets from being categorized as securities. This means tokens like Ethereum, Solana, Cardano, XRP, and Dogecoin would no longer fall under SEC scrutiny.
Instead, they would be treated as digital commodities, regulated by the CFTC, an agency known for its more innovation-friendly approach. This reclassification could streamline compliance, foster innovation, and reduce legal uncertainty for developers and investors alike.
Defining Digital Commodities
The bill offers a broad definition of digital commodities, describing them as blockchain-based assets primarily used for value transfer within decentralized networks.
However, not all tokens are off the hook—assets that clearly function as securities or derivatives will remain under the SEC’s jurisdiction. The bill currently lacks guidelines for borderline cases, creating a potential grey area for some tokens.
The Mature Blockchain System Explained
A standout provision of the CLARITY Act is the introduction of a voluntary status known as a “mature blockchain system.”
To qualify, a blockchain must:
- Be open-source
- Operate autonomously without centralized control
- Enforce ownership concentration limits (no single entity may hold more than 20%)
This classification is optional, but comes with perks like relaxed restrictions on asset sales by founders and early holders. This could encourage greater transparency and long-term sustainability in blockchain projects.
What This Means for Crypto Founders and Investors
For startups, the bill offers a clearer path to launch compliant projects without being bogged down by legacy securities laws. For investors, this could mean more accountability and transparency, especially from projects that voluntarily pursue mature system certification.
Rep. Bryan Steil, who introduced the bill, emphasized the need for “a framework that allows innovation to flourish while protecting consumers.”
Bipartisan Momentum: The Road Ahead
The CLARITY Act is led by Republican Rep. Bryan Steil of Wisconsin and has backing from three Democratic cosponsors, reflecting bipartisan support. The bill is scheduled for a full committee markup on June 10.
Meanwhile, the Senate is advancing the GENIUS Act, focusing on stablecoin regulations. Together, these legislative efforts signal a growing desire among U.S. lawmakers to bring clarity and consistency to digital asset regulation.
Conclusion: Why This Matters
The CLARITY Act could be a game-changer for crypto regulation in the U.S. By shifting oversight to the CFTC and defining a new standard for blockchain maturity, the bill addresses long-standing industry concerns over ambiguous and overlapping regulations.
If passed, it will not only empower innovation but also offer investors stronger legal protections—an important step toward mainstream acceptance of digital assets.