"The CLARITY Act (Digital Asset Market Clarity Act of 2025) aims to break the industry's legislative logjam through a two-pronged approach that defines what digital assets are and delegates oversight based on how they function in the marketplace. The legislation moves beyond ad hoc enforcement and instead proposes a comprehensive framework for asset classification, intermediary roles and mandatory disclosures. This article explains what the CLARITY Act is and why it matters, outlines its objectives and examines how it proposes to govern stablecoins."
"For several years, digital asset companies have faced a confusing overlap between the US Securities and Exchange Commission (SEC) and the US Commodity Futures Trading Commission (CFTC). The SEC often treats many tokens as securities, whereas the CFTC classifies them as commodities. This ambiguity has slowed innovation, complicated compliance, frustrated investors and created confusion for crypto businesses. The CLARITY Act aims to resolve this logjam by establishing"
The CLARITY Act establishes a function-based framework that defines digital assets and assigns regulatory oversight according to market roles and activities. The bill places most spot trading of qualifying tokens under the Commodity Futures Trading Commission while preserving SEC authority over primary offerings, disclosures and investor protections. The act emphasizes activity-based regulation, requiring registration, conduct standards and disclosure obligations for exchanges, brokers and dealers to improve transparency and market integrity. The GENIUS Act governs stablecoins; CLARITY applies in complementary areas such as disclosures and reward features tied to stablecoin use. The legislation addresses mature-blockchain considerations and faces arguments about scope, enforcement and legislative status.
Read at Cointelegraph
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