CLARITY Act: Proposed U.S. Crypto Market Structure Bill Explained
The Digital Asset Market Clarity Act aims to establish a federal framework for crypto regulation in the United States.
The CLARITY Act, formally known as the Digital Asset Market Clarity Act, is a proposed U.S. bill that would create a federal framework for how digital assets are issued, traded, and regulated. The legislation aims to provide clarity for crypto firms on compliance with federal laws and the roles of various regulators.
The bill focuses on market structure, addressing which agency—the SEC or CFTC—has authority over specific digital assets. It seeks to establish clear definitions for securities and commodities in the crypto space, as well as requirements for token issuers and trading platforms.
Key Provisions
- Define digital assets as securities, commodities, or a new asset class
- Assign regulatory oversight to the SEC and CFTC based on asset type
- Require registration for crypto exchanges and brokers
- Set disclosure standards for token issuers
The CLARITY Act is one of several recent legislative efforts in the U.S. to bring regulatory certainty to the cryptocurrency industry. If passed, it could significantly shape how digital assets are treated under federal law.