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Home»Regulation»Clarity Act aims to eliminate fog from American cryptography regulations
Regulation

Clarity Act aims to eliminate fog from American cryptography regulations

May 31, 2025No Comments3 Mins Read
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Washington, DC – In a great bipartite effort to provide clarity and consistency to the regulation of digital assets, the Congress member Don davis (D-NC-01), classification member of basic product markets, digital assets and the rural development subcommittee, has teamed up with a coalition of legislators to introduce the Digital asset market clarity law (clarity) of 2025.

Co-diriged by Davis and House Agriculture Committee Member Angie Craig (D-MN-02), legislation is supported by a bipartite group including the chairman of the Chamber of Financial Services Committee French hill (R-AR-02), president of the Chamber Agriculture Committee Glenn “GT” Thompson (R-PA-15), and other eminent voices on both sides of the aisle.

THE Clarity is designed to establish a complete regulatory framework for digital assets, ensure fair surveillance, promote innovation and protect consumers in one of the sectors of the modern economy which is experiencing the fastest growth.

“Families, entrepreneurs and small businesses across our country, including rural areas from eastern North Carolina, are looking for ways to engage in the modern economy,” said representative Davis. “Digital assets have a chance for a more inclusive financial future, but we need clear rules and fair surveillance so that innovation thrives. Congress must guarantee that America shapes digital finance, creates opportunities, protects consumers and supports neglected communities. ”

Key provisions of the law on clarity

The legislation aims to clearly define when a digital asset is the regulatory authority of one or the other Commodity Futures Trading Commission (CFTC) or the Commission of securities and exchange (dry)::

  • CFTC Numerical Products Monitoring: The bill grants the CFTC authority on “digital products”, which include assets based on blockchain which are considered decentralized or which are among the “mature” systems.
  • Dry and CFTC Rollition: Although the bill describes the key categories, it asks the two agencies to define more terms by regulatory regulations, guaranteeing flexibility as the market is evolving.
  • Secondary market regulations: The CFTC would supervise most secondary market transactions – where the cryptographic assets previously issued are purchased and sold.
  • Registration requirements: Exchanges, brokers and dealers offering exchanges in digital products would be required to register with the CFTC and to comply with strict standards linked to market integrity, disclosure, customer funds and file holding.

Rely on the previous legislative momentum

The Clarity Act relies on the bases laid down by the Financial innovation and technology for 21st century law presented in a previous session of the congress. It reaffirms the authority of the CFTC on the transactions of digital products of the “cash market”, with closely defined exceptions, and aims to prevent manipulation on cryptographic markets while providing a stable path for legal compliance.

A step towards the modernization of American financial regulations

With the bipartite support and the growing recognition of the economic importance of digital assets, the Clarity Act represents a critical step towards the modernization of the United States’s approach to financial regulation in the digital age.

Supporters of the bill argue that without federal clarity, innovation will move abroad or remain stuck in legal limbo, while consumers remain vulnerable on unregulated markets.

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