#USCryptoMarketStructureBill As of **February 3, 2026**, the US crypto market structure landscape has evolved significantly following the legislative efforts of 2024 and 2025.
While you may recall the **FIT21 Act** from 2024, the primary market structure legislation currently active in Congress is the **Digital Asset Market Clarity Act (The "Clarity Act")**.
Here is the current status and structure of the bill as of today.
### **1. Current Legislation: The Clarity Act**
* **Formal Name:** Digital Asset Market Clarity Act of 2025 (H.R. 3633 / S. 1582 equivalent).
* **Current Status (Feb 2026):** The bill is currently in the **Senate Banking Committee** for markup.
* It was introduced in the House in mid-2025.
* It serves as the "2.0" version of the previous FIT21 proposal, refined to align with the new administration's policy priorities.
* **Key Context:** Following the 2024 elections and the inauguration of President Trump, the regulatory tone shifted. The administration signaled support for clear statutory rules over "regulation by enforcement," giving this bill a higher probability of passing than its predecessors.
### **2. Core Components of the Clarity Act**
The bill aims to solve the "turf war" between the SEC and CFTC by creating a bright-line test for digital assets.
| Feature | Description |
| --- | --- |
| **Jurisdictional Split** | **CFTC:** Regulates "Digital Commodities" (assets that are decentralized).
**SEC:** Regulates "Restricted Digital Assets" (assets that are centralized/securities). |
| **The "Decentralization" Test** | Establishes a certification process where a blockchain network can prove it is decentralized (no central authority controls >20% of power/assets). Once certified, the asset moves to CFTC oversight. |
| **Secondary Markets** | Allows digital commodities to be traded on registered exchanges (Digital Commodity Exchanges) under CFTC supervision, legalizing spot market trading for qualifying assets. |
| **Stablecoins** | *Note:* While the Clarity Act touches on this, the **GENIUS Act** (passed in July 2025) now primarily governs payment stablecoins, requiring issuers to be permitted and backed 1:1 by reserves. |
| **Consumer Protections** | Mandates segregation of customer funds (preventing FTX-style commingling), strict record-keeping, and disclosure requirements for token projects. |
### **3. How It Differs from the 2024 "FIT21" Bill**
The **Financial Innovation and Technology for the 21st Century Act (FIT21)** was the predecessor to the current Clarity Act.
* **What happened to FIT21?** It passed the House in May 2024 with bipartisan support but stalled and expired in the Senate at the end of the 118th Congress.
* **Evolution:** The Clarity Act retains the core "CFTC vs. SEC" framework of FIT21 but includes stricter provisions on **DeFi** (Decentralized Finance) and stronger anti-money laundering (AML) requirements to satisfy national security concerns in the Senate.
### **4. Arguments & Implications**
* **Proponents (Crypto Industry, Republicans):** Argue the bill finally provides the "rules of the road" needed to keep crypto innovation in the US, allowing compliant firms to operate without fear of retroactive lawsuits.
* **Critics (Consumer Advocates, some Senate Democrats):** Concern that the "decentralization" definition is too loose, potentially allowing many crypto assets to evade stricter SEC securities laws by self-certifying as commodities.
### **5. Summary Timeline**
* **May 2024:** FIT21 passes House, stalls in Senate.
* **Jan 2025:** New Administration takes office; crypto policy review begins.
* **July 2025:** **GENIUS Act** (Stablecoins) signed into law.
* **Jan 2026:** **Clarity Act** enters Senate Banking Committee markup (Current Stage).
### **Next Step**
Would you like a breakdown of the specific **"Decentralization Test" criteria** currently being debated in the Senate, or more details on how the passed **GENIUS Act** impacts stablecoin holders?#USCryptoMarketStructureBill $ETH
