2,% supply or validation) intended to exempt Bitcoin and Ethereum from SEC registration; a requirement that secondary markets for digital commodities register with the CFTC (digital commodity exchanges, brokers/dealers) with a 36,-day temporary registration window; and a limited Securities Act registration exemption for token offerings classified as securities (up to $75 million per year) subject to enhanced disclosures. The bill creates a permanent joint advisory committee to coordinate SEC–CFTC boundaries and protects non‑custodial protocol actors (developers, validators, miners) from broker/dealer classification. Parallel regulatory moves — CFTC allowing spot crypto on CFTC-registered futures exchanges and pro-crypto appointments at agencies — accelerate the shift. For traders, the bill aims to reduce regulatory uncertainty, potentially easing institutional on‑ramp and exchange operations, while DeFi enforcement specifics and international alignment remain unresolved. Primary keywords: CLARITY Act, CFTC, SEC, digital commodities, Bitcoin, Ethereum. Secondary/semantic keywords included: mature blockchain exemption, digital commodity exchange registration, Securities Act exemption, market structure, regulatory clarity.">

CLARITY Act Moves to Senate: CFTC to Oversee Most Native Tokens, SEC Keeps Securities Role

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The CLARITY Act (Cryptocurrency Market Structure Act) is advancing to the Senate after a House passage (294–0). The bipartisan bill draws a statutory line between "digital commodities" and "digital securities," shifting oversight for most native tokens on decentralized blockchains to the Commodity Futures Trading Commission (CFTC) while preserving SEC authority over assets that meet the Howey test. Key provisions include a "mature blockchain" exemption (no single entity controls >20% supply or validation) intended to exempt Bitcoin and Ethereum from SEC registration; a requirement that secondary markets for digital commodities register with the CFTC (digital commodity exchanges, brokers/dealers) with a 360-day temporary registration window; and a limited Securities Act registration exemption for token offerings classified as securities (up to $75 million per year) subject to enhanced disclosures. The bill creates a permanent joint advisory committee to coordinate SEC–CFTC boundaries and protects non‑custodial protocol actors (developers, validators, miners) from broker/dealer classification. Parallel regulatory moves — CFTC allowing spot crypto on CFTC-registered futures exchanges and pro-crypto appointments at agencies — accelerate the shift. For traders, the bill aims to reduce regulatory uncertainty, potentially easing institutional on‑ramp and exchange operations, while DeFi enforcement specifics and international alignment remain unresolved. Primary keywords: CLARITY Act, CFTC, SEC, digital commodities, Bitcoin, Ethereum. Secondary/semantic keywords included: mature blockchain exemption, digital commodity exchange registration, Securities Act exemption, market structure, regulatory clarity.
Bullish
The CLARITY Act reduces regulatory uncertainty by providing a clearer jurisdictional split: most native tokens on decentralized networks would fall under CFTC oversight as digital commodities, while securities remain with the SEC. For BTC and ETH specifically, the "mature blockchain" exemption and explicit CFTC remit lower the legal risk of SEC enforcement and make spot products and institutional participation more practicable. Short-term effects: positive sentiment and potential price intraday spikes as markets price reduced legal tail risk and spot trading/institutional access prospects. Exchanges and derivatives desks may see increased product listings and volumes. Long-term effects: clearer rules could attract institutional capital, expand custody and trading infrastructure, and deepen liquidity—supporting sustained upside. Caveats: DeFi-specific enforcement and cross-border regulatory alignment remain open, so localized compliance risks and episodic volatility could persist. Overall, the net effect on mentioned assets (BTC, ETH) is bullish given improved regulatory clarity and likely institutional inflows.