Crypto Regulation: CLARITY Act Aims to End Years of Uncertainty

Crypto has come a long way since its humble beginnings, but it's still lacking one crucial element: clear rules of the road. The CLARITY Act (HR 3633) aims to establish federal oversight for crypto markets, defining the roles of the SEC and CFTC, imposing disclosures and restrictions on insiders, and bringing exchanges under traditional finance rules.

The current regulatory framework is broken into two components, stablecoins and the rest of the market. The GENIUS Act created a federal framework for stablecoins in July 2025, but stablecoins depend on blockchain networks that still lack comprehensive federal structure. Agency guidance can fill some gaps, but it's not a substitute for legislation.

The CLARITY Act would provide a permanent framework for doing business responsibly. It would protect consumers by establishing clear pathways for digital assets to transition from the SEC to CFTC oversight and requiring federally registered crypto exchanges to meet standards of registration, supervision, audits, disclosures, surveillance, and customer-asset protections.