Key Takeaways
- House Financial Services Chairman French Hill says the CLARITY Act could pass within weeks.
- The bill cleared the House committee in July and now heads to the Senate.
- It would establish the most comprehensive regulatory framework for U.S. crypto markets to date.
Washington is edging closer to enacting one of the most consequential pieces of crypto legislation in U.S. history.
Representative French Hill, chairman of the House Financial Services Committee, said this week that the long-awaited CLARITY Act could pass within “the next few weeks,” citing overwhelming bipartisan support.
CLARITY Act Weeks Away From Passage
The CLARITY Act—formally known as H.R. 3633—passed the House committee in July with support from both Democrats and Republicans.
Hill stressed in a Fox interview that the legislation was advanced on a “suspension-level vote,” a sign of its broad appeal.
“The CLARITY Act in the House got 78 Democrat votes in July,” he said. “We sent that to the Senate with overwhelming support from both sides of the aisle. I hope we can get this done in the next few weeks.”
Defining Crypto Market Structure
At its core, the CLARITY Act seeks to resolve a problem that has dogged the crypto industry for more than a decade: regulatory ambiguity.
The bill assigns the Commodity Futures Trading Commission (CFTC) as the lead overseer of digital commodity markets, while leaving the Securities and Exchange Commission (SEC) in charge of investment contracts and securities.
The framework would require exchanges, brokers, and dealers operating in digital commodities to register with the CFTC within 180 days, including disclosures on ownership, financial condition, and operations.
By clearly delineating roles, lawmakers hope to end the jurisdictional clashes that have pitted the SEC and CFTC against each other for years.
From Enforcement to Clarity
The timing of the CLARITY Act is critical.
Under the Biden administration, the SEC pursued a heavy-handed enforcement-first approach under Chair Gary Gensler, sparking backlash from crypto firms and investors.
Passage of the bill would mark a sharp turn away from that strategy, establishing a clear market structure for the industry and aligning with the White House’s July 30 digital assets report, which endorsed the framework.
Coupled with July’s stablecoin legislation, the CLARITY Act represents a broader shift toward comprehensive digital asset policy.
If enacted, it would not only end years of regulatory turf wars but also give the U.S. a foundation to compete globally in crypto innovation.
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Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
