CLARITY Act Advances Bipartisan Crypto Regulatory Framework in U.S.

U.S. Representative French Hill introduced the Digital Asset Market Clarity Act of 2025, a bipartisan effort to resolve jurisdictional conflicts between the SEC and CFTC over cryptocurrency oversight. The bill defines blockchain-linked assets as digital commodities when used primarily for value transfer, potentially encompassing most major cryptocurrencies.

Three Democratic lawmakers—Angie Craig, Ritchie Torres, and Don Davis—joined Republican sponsors in backing the legislation. "This bill prioritizes consumer protection while fostering American innovation," Hill stated on May 29. The CLARITY Act marks the first concrete step toward establishing consistent federal crypto regulations after years of regulatory ambiguity.

Concurrently progressing with the GENIUS Act, the legislation could reshape market dynamics by clarifying compliance requirements for exchanges and token issuers. The broad commodity definition may particularly impact assets like BTC and ETH, though regulatory specifics remain undefined for algorithmic tokens and security-like instruments.