Clarity Act Aims to Align SEC and CFTC Oversight of Crypto

The proposed Digital Asset Clarity Act would clarify which digital assets fall under the jurisdiction of the Securities and Exchange Commission and which are treated as commodities by the Commodity Futures Trading Commission. Lawmakers claim that this division of authority will eliminate the current regulatory gray area that hinders market growth.

During a congressional hearing, Committee Chair Brian Steele emphasized the need for consistent rules rather than piecemeal enforcement. The legislation also promises legal protection for software developers and service providers that do not hold customer assets, encouraging innovation in the fintech sector.

Industry participants highlighted the practical impact of the bill. Randy Abernathy of Bullish explained that, under the new framework, registered exchanges would be required to meet strict standards for asset protection, capital adequacy, market surveillance, and periodic examinations. Such measures, he said, would boost investor confidence and attract capital back to the United States.

Legal counsel for Nova Labs and Wisdom Tree added that the current lack of clarity has led to prolonged litigation and financial loss. They argued that a well‑defined regulatory environment is essential for the United States to lead the global transition to digital finance.