The Crypto Clarity Act is an important law aimed at providing regulatory clarity and oversight over the digital asset space in the United States. Introduced on May 29, 2025, this legislation seeks to define the roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in regulating digital assets ¹.
*Key Provisions:*
- *Clear Definitions*: Establishes consistent legal definitions for terms such as blockchain, digital assets, and digital commodities to avoid confusion ¹.
- *Regulatory Jurisdiction*: Separates oversight between the SEC and CFTC based on how digital assets are utilized. The SEC handles investment offerings, while the CFTC deals with commodities and trading ¹ ².
- *Investment Contract Assets*: Allows certain tokens to transition from being regulated as securities to being treated as commodities if they become decentralized ¹ ².
- *Registration Requirements*: Requires crypto businesses, such as exchanges and brokers, to register with the CFTC or face the risk of penalties ¹.
This legislation has been approved by the House of Representatives and is now heading to the Senate for further consideration ³. Its impact will be significant, providing clarity and stability to the crypto market and positioning the United States as a leader in digital asset regulation.