House Passes CLARITY Act: US Crypto Regulation Defined
CLARITY Act Passes House: What It Means for Crypto
The US House of Representatives has officially passed the Digital Asset Market Structure Clarity Act, known as the CLARITY Act. This landmark bill seeks to establish clear definitions for digital assets, delineating regulatory responsibilities between the SEC (Securities and Exchange Commission) and the CFTC (Commodity Futures Trading Commission). The House voted in favor after navigating political discussions during “Crypto Week.”
Key Provisions of the CLARITY Act
The CLARITY Act aims to provide a framework for the crypto industry:
- Defines Digital Assets: The act clarifies when a token should be classified as a security versus a commodity.
- Mature Blockchain Certification: Projects can certify as “mature blockchains,” potentially reducing regulatory oversight if they demonstrate sufficient decentralization.
- New CFTC Categories: Creates new categories for digital asset exchanges and brokers registered with the CFTC, requiring them to meet standards for custody, Anti-Money Laundering (AML), and transparency.
- Safe Harbor Exemption: Establishes a $75 million safe-harbor exemption for issuing digital commodities, provided issuers meet disclosure requirements and investor protections.
- Self-Custody Rights: Affirms individuals’ rights to self-custody crypto wallets.
- National Consistency: Intends to preempt conflicting state laws, ensuring a more consistent national regulatory environment.
What's Next for the CLARITY Act?
The CLARITY Act now moves to the Senate, where its future is uncertain. Some Democrats have voiced concerns about potentially reduced SEC authority. If the Senate approves the bill, it would then go to the President for signature to become law.
This vote follows the House’s earlier approval of the GENIUS Act, a stablecoin regulation bill.
Implementation Timeline
If the bill passes the Senate, implementation would begin in 2026 through SEC and CFTC rulemaking. The crypto industry is closely monitoring these developments, awaiting the final details that will shape the future of digital asset regulation in the US.
Disclaimer: This news article aims to provide accurate, timely information. Readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.
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