Congress Moves Toward Defining U.S. Crypto Laws
Congress appears to be making progress on defining crypto regulations with a new bipartisan bill.
In a landmark move toward crypto oversight, the U.S. House Agriculture Committee and the House Financial Services Committee have moved the Digital Asset Market Clarity Act, the so-called “CLARITY Act,” closer to the full House of Representatives floor with their vote to advance the legislation. Two lawmakers from the Democratic Party and another from the Republican Party have teamed up again.
The Agriculture Committee supported the bill by a vote of 47-6, while the Financial Services Committee later backed the measure by a vote of 32-19. The bill is now headed to the House floor, where the two versions produced by the committees will be merged.
What the Bill Proposes
The purpose of the CLARITY Act is to eliminate confusion around crypto regulation—specifically whether a digital asset falls under the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC).
Key provisions include:
- Rules for segregating customer assets
- Stricter disclosure requirements
- Guidelines for digital asset handling
The bill also aims to provide legal protections for blockchain developers, especially those working on non-custodial platforms, to prevent misclassification as unlicensed money transmitters. This is essential to retaining U.S. talent and fostering crypto innovation.
Heated Debate Amid Bipartisan Progress
Though the bill enjoys broad support, it wasn’t without controversy. Democratic lawmakers raised concerns about possible “bailouts” for crypto firms and a potential conflict of interest involving Donald Trump.
Representative Maxine Waters proposed an amendment to target Trump’s crypto involvement and prevent officials from financially benefiting from crypto laws. Representative Brad Sherman argued the bill could set up the industry for taxpayer-funded bailouts. Neither amendment passed.
Committee Chair French Hill, a key proponent of the bill, maintained that its primary goal is regulatory clarity—not ethics reform or corporate rescue.
Resource Concerns and Agency Capacity
Some lawmakers voiced doubts over whether the SEC and CFTC have the capacity to enforce the new law effectively. The SEC has over 4,000 employees, while the CFTC operates with fewer than 1,000.
Representative Andrea Salinas expressed concern that even well-intentioned laws can falter without proper staffing and funding. As the bill expands oversight duties, it calls into question the agencies’ enforcement readiness.
What’s Next?
The bill now advances to a full House vote. If it passes, the Digital Asset Market Clarity Act will mark a major turning point for U.S. crypto policy.
This legislation could reshape how digital asset businesses operate, offering legal protection for developers and ensuring federal agency accountability.
The law may lay the groundwork for future regulation, especially as crypto begins to merge more deeply with traditional finance. All eyes are now on the House for the next critical vote.
