The Digital Asset Market Clarity Act of 2025 advances towards approval in early 2026, aiming to define jurisdictional boundaries between the CFTC and SEC across U.S. cryptocurrency markets.
Expected to streamline the regulatory landscape, the legislation could shift control over digital commodities, impacting market operations and fostering stability.
The Digital Asset Market Clarity Act of 2025 (CLARITY Act) is advancing to provide a concrete framework for the U.S. crypto market structure. This legislative push assigns specific regulatory responsibilities to both the CFTC and the SEC.
Historically, the FIT21 Act laid groundwork for a split regulatory approach, similar to the current CLARITY Act framework. This adaptive strategy helps align U.S. regulations with evolving market conditions and technological advancements.
CFTC and SEC to Split Crypto Oversight
The CFTC will oversee digital commodities, and the SEC for securities-like digital assets. Senator Tim Scott and Senator Cynthia Lummis are pivotal in promoting this initiative, which aims to progress by early 2026.
Legislation to Clarify U.S. Crypto Market Regulation
The proposed legislation is expected to bring clarity to U.S. crypto market regulation, potentially reducing ambiguity for exchanges and market participants. Regulatory bodies anticipate improved frameworks, aligning with market needs for a streamlined approach.
Insights suggest the financial sector may experience shifts, influencing how digital commodity spot markets operate. The CFTC’s new responsibilities could enhance regulatory efficiency, while historical moves like the FIT21 Act build momentum for this structured oversight.
FIT21 Act as Predecessor to CLARITY Framework
Experts, such as those from Kanalcoin, note the importance of balancing innovation and regulation. Drawing from past experiences, the focus on clear roles for regulators is anticipated to stabilize markets and encourage responsible growth in the digital asset space.
“Senator Tim Scott, a Senate Banking Committee Member, wants the Senate to advance market structure legislation by September 30, 2025, and that the House’s CLARITY Act offers a ‘strong template’ for the Senate.” – source
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