CLARITY Act Sparks Regulatory Uncertainty in US Crypto Market

The CLARITY Act proposes to reduce overlap between the SEC and CFTC by allowing certain digital assets that become sufficiently decentralized to fall under CFTC oversight rather than being regulated as securities.

This change could give exchanges, token issuers, and institutional investors a clearer set of rules, making it easier for them to launch products, list assets, and attract capital without worrying about regulatory interpretations changing constantly.

Large banks are pushing back against the bill, citing concerns that it would weaken the SEC's authority over high-risk assets and create a separate pathway for digital assets that could be less demanding than traditional financial regulations.