US House Passes CLARITY Act to Define Crypto Regulation in Landmark Vote

The US House of Representatives has approved the CLARITY Act, marking a pivotal moment for cryptocurrency regulation. The legislation establishes clear definitions for digital assets and allocates oversight between regulatory bodies, ending weeks of political stalemate during 'Crypto Week.'

The act delineates when a token qualifies as a security or commodity, introducing a 'mature blockchain' certification that reduces regulatory scrutiny for sufficiently decentralized projects. It also creates new CFTC-registered categories for exchanges and brokers, mandating strict compliance with custody, anti-money laundering (AML), and transparency standards.

A framework for issuing digital commodities is introduced, requiring issuers to provide regular disclosures and adhere to investor protections. The bill also safeguards individuals' rights to self-custody crypto wallets and preempts conflicting state laws to ensure uniform national regulation.

Now headed to the Senate, the CLARITY Act faces uncertainty amid Democratic concerns over diminished SEC authority. Its passage in the House represents the most comprehensive US crypto legislation to date, offering long-sought clarity for projects, exchanges, and investors.

If enacted, the bill WOULD become law upon President Trump's signature. The administration has voiced strong support for the measure. This vote follows the House's recent approval of a stablecoin regulation bill, expected to be signed into law imminently.