CLARITY Act Gains Ground as House Vote Nears
U.S. crypto regulation has advanced significantly this week, with the CLARITY Act (also known as the Digital Asset Market Clarity Act) passing through two House committees and now on the verge of a full House vote.
The House Agriculture Committee passed the bill with resounding support on Tuesday with 47 votes to 6. It was then the turn of the House Financial Services Committee, which voted 32 to 19 in favor of the bill the next day. As more members of Congress and the Senate take an interest in the digital asset space, a clearer regulatory framework for digital assets in the U.S. is gaining momentum.
As the bill’s sponsor, Representative French Hill said, “This is our opportunity to lead the future of Web3 and digital financial services with tokenized payments.” Furthermore, Hill has been instrumental in advancing this bill and previously working on stablecoin regulations.
Bryan Steil, chair of the Financial Services Committee’s crypto subcommittee, heralded this development as “a very positive step” to “further advance blockchain,” benefiting U.S. financial leadership in the crypto future.
What the CLARITY Act Proposes
If it becomes law, regulatory duties between the SEC and the CFTC will be adjusted. The aim is to clear up confusion, curb overlap, and ensure specific oversight of digital assets.
Key elements of the bill include:
- The SEC and CFTC have clear jurisdictional responsibilities for cryptocurrencies.
- Exchanges, brokers, and dealers who deal in digital commodities are given provisional CFTC registration.
- Consumers must be protected with rules around asset custody, disclosures, and transaction records.
- Users should be allowed to transact in non-custodial wallets and peer-to-peer transactions.
- Another amendment aims to help certain non-controlling blockchain developers not be considered money transmitters; exposing them to these regulations would be an overreach.
Divided Opinions in Congress
Some Democrats showed reluctance despite bipartisan progress. Representative Maxine Waters expressed concern that the bill could be abused, noting that it is possible former President Donald Trump could personally benefit from the legislation as he is involved in crypto. Another amendment would ban bailouts of the crypto industry going forward.
Rep. Brad Sherman voiced similar issues, raising the possibility of loopholes arising from this. But Republicans pushed back on this, claiming regulation should depend on what platforms actually do, not what they say they are.
Industry Reaction and Next Steps
The crypto industry has welcomed the bill. Ji Kim — president and acting CEO of the Crypto Council for Innovation — called it “a significant move toward transparent crypto rules that uphold consumer rights while fostering innovation.”
Then, the unified version of the bill will be voted on by the House of Representatives. It could change the way digital assets are regulated in the United States if it becomes law and provide clarity, balance, and long overdue structure.
The CLARITY Act could enhance technological innovation while maintaining regulatory oversight and investor protection as the digital asset space expands rapidly.
