US Lawmakers Advance CLARITY Act to Resolve Crypto Regulatory Jurisdiction

The House Committees of Financial Services and Agriculture have passed the bipartisan CLARITY Act (H.R. 3633), setting the stage for a full floor vote. The legislation aims to clarify the regulatory roles of the SEC and CFTC in overseeing digital assets, marking a significant step toward resolving long-standing jurisdictional conflicts.

Key provisions designate certain cryptocurrencies as commodities under CFTC oversight while others remain securities regulated by the SEC. The bill introduces investor protections including disclosure requirements and fund segregation rules, while carving out exemptions for blockchain developers from money transmitter regulations.

Decentralized finance protocols gain specific safeguards for non-custodial wallet providers and peer-to-peer transactions. Despite bipartisan support evidenced by 32-19 and 47-6 committee votes, critics like Representative Maxine Waters warn certain provisions may create regulatory gaps.