The Clarity Act, officially called the Digital Asset Market Clarity Act of 2025, is a new U.S. law proposal designed to clear up confusion around how cryptocurrencies and digital assets are regulated. For years, the crypto world has faced uncertainty about which government agency oversees what. This Act aims to fix that.
Breaking Down the Clarity Act
The Act divides digital assets into three main groups:
- Securities – These remain under the control of the Securities and Exchange Commission (SEC).
- Commodities – These fall under the Commodity Futures Trading Commission (CFTC).
- Stablecoins – These will have separate rules created in the future.
What Is a Digital Commodity?
The Act defines a digital commodity as a digital asset that is closely tied to a blockchain system. Its value comes from the blockchain’s use, not from promises or contracts like securities. This means many cryptocurrencies like Bitcoin and Ethereum would be classified as commodities.
Who Regulates What?
- The CFTC will have exclusive authority over digital commodities. This includes exchanges, brokers, and dealers that handle these assets.
- The SEC will keep control over securities and investment contracts but will no longer regulate digital commodities that don’t qualify as securities.
- Both agencies will share oversight of certain payment stablecoins.
The Idea of a “Mature Blockchain”
A key part of the Act is the concept of a “mature blockchain system.” This means a blockchain that is decentralized enough—not controlled by any single person or group. Tokens on mature blockchains fall under the CFTC’s jurisdiction.
Projects can notify the SEC if their blockchain is mature or will become mature within four years. This gives projects a clear path to move from SEC to CFTC oversight as they grow decentralized.
New Registration Rules
The Act creates new registration classes under the CFTC for digital commodity exchanges, brokers, and dealers. This aims to bring more transparency and order to the crypto market.
Exemptions and Disclosure Requirements
- Some digital asset sales can avoid registering as securities if they raise less than $75 million annually and operate on mature blockchains.
- Issuers must disclose important details like source code, tokenomics, risks, and financial data to protect investors.
Why the Clarity Act Matters
- It solves the long-standing question: Is a crypto token a security or a commodity?
- It clearly divides regulatory responsibilities between the SEC and CFTC.
- It encourages projects to become more decentralized to qualify as commodities.
- It supports people’s right to control their own crypto wallets.
- It pushes for transparency through disclosure rules.
What Could This Mean for Crypto?
- Blockchain projects might aim to decentralize faster to benefit from lighter regulation.
- Crypto exchanges and brokers could face clearer rules.
- Stablecoins will get their own set of regulations soon.
- Investors may feel more confident with clearer protections.
Key Takeaways
| Topic | What It Means |
| Digital Asset Categories | Divides assets into securities, commodities, stablecoins |
| Regulatory Agencies | SEC handles securities; CFTC handles commodities |
| Mature Blockchain | Decentralized blockchains fall under CFTC |
| Registration | New classes for exchanges and brokers under CFTC |
| Disclosure | Issuers must share key info with investors |
The Clarity Act is a major step toward making crypto regulation clearer and fairer. It aims to balance innovation with investor protection by defining digital assets and assigning clear roles to regulators. This could help the crypto market grow with more trust and stability.
