Yesterday, House Financial Services Committee Chair French Hill introduced the Digital Asset Market Clarity (CLARITY) Act, a bipartisan bill aimed at regulating digital assets. Developed in conjunction with the House Committee on Agriculture, the legislation has garnered support from five Republican co-sponsors and three Democrats.
“I am proud to introduce the bipartisan CLARITY Act with my colleagues. Our bill brings long-overdue clarity to the digital asset ecosystem, prioritizes consumer protection and American innovation, and builds off our work in the 118th Congress,” said Chairman Hill. The reference to the previous Congress was a nod to the FIT 21 bill for digital assets passed by the full House, but not by the Senate.
As expected, the bulk of the supervision responsibilities will rest with the Commodity Futures Trading Commission (CFTC), with important parts of the rulemaking to be implemented jointly with the Securities Exchange Commission (SEC). Historically, the CFTC has been more involved with derivatives and has had enforcement authority over commodities. Neither of these responsibilities are particularly consumer focused. Hence, this is a significant expansion of duties, especially given crypto’s large retail investment base.
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