Crypto Gets a New Sheriff: Bipartisan CLARITY Act Hands Reins to CFTC

Washington finally moves—lawmakers strike a rare bipartisan deal to wrestle crypto regulation into the 21st century. The CLARITY Act shifts spot market oversight from the SEC’s ’regulation by enforcement’ approach to the CFTC’s more structured playbook.

Because nothing says ’financial innovation’ like shuffling paperwork between agencies. But hey—at least it’s progress.

Framework details

Primary token offerings may rely on a four-year SAFE harbor if the underlying network reaches “mature” status and the issuer’s total raise stays below $75 million during any 12-month window. 

Once certified, secondary trades by parties other than the issuer fall outside securities jurisdiction, aiming to eliminate what it classified as Howey-based uncertainty for exchange listings.

Spot trading, brokerage, and custody of digital commodities would MOVE to exclusive Commodity Futures Trading Commission (CFTC) supervision, while the proposal maintains dual oversight for hybrid products that combine securities. 

At the Securities and Exchange Commission (SEC), alternative trading systems and broker-dealers that handle only digital commodities would file a notice rather than obtain a new license. 

In contrast, native crypto venues must complete provisional CFTC registration within 180 days and join a self-regulatory organization. The measure also keeps bank-regulated payment stablecoins outside commodity rules and folds crypto intermediaries into Bank Secrecy Act obligations.

Bipartisan backing

Agriculture Committee Chairman G.T. Thompson said the bill “delivers the certainty entrepreneurs and markets need.” 

House Majority Whip Tom Emmer labeled the legislation “a bold step” to keep the next iteration of the internet in US hands. 

Digital-asset subcommittee chairs Bryan Steil and Dusty Johnson both argued that the act “democratizes” access and “gives markets the clarity they need to thrive.”

Ohio Republican Warren Davidson pointed to safeguards for self-custody and transaction freedom, noting that he has pursued statutory clarity since 2018. 

Democratic co-sponsors Angie Craig, Ritchie Torres, and Don Davis framed the bill as a  consumer-protection and inclusion policy, with Craig stressing “rules of the road for businesses” and Torres saying the text “closes regulatory gaps.”

The introduction follows a May 5 discussion draft and a bipartisan roundtable held the following day, which tested key concepts with industry and academic witnesses. 

House Financial Services and Agriculture committees now plan joint markups before sending the measure to the floor.

Additionally, House leaders will next schedule committee votes, after which the measure could advance to the full chamber for consideration.