CLARITY Act Advances Regulatory Framework for Digital Assets, Classifying Them as Commodities

Senator Cynthia Lummis has championed the CLARITY Act as a pivotal step toward regulatory clarity for digital asset investors. The legislation, now backed by the TRUMP administration, explicitly defines digital assets as "commodities" rather than securities, placing them under the purview of the Commodity Futures Trading Commission (CFTC). This move aims to resolve longstanding jurisdictional ambiguities between the CFTC and the Securities and Exchange Commission (SEC).

The bill introduces stringent conditions under which ancillary asset transactions could still be deemed investment contracts, ensuring continued SEC oversight where necessary. It also mandates updates to the SEC's regulatory framework to safeguard investor interests while addressing critical areas like banking access, transparency, self-custody, and anti-money laundering protocols.

Senator Tim Scott emphasized bipartisan collaboration in crafting the legislation, stating, "Working with President Trump, we can deliver a comprehensive regulatory framework for digital assets." The House has already approved the bill, signaling growing political consensus on crypto regulation.