House Passes Clarity Act to Define US Crypto Regulation
The House has passed the Clarity Act, a landmark bill to define US crypto regulation. The Clarity Act categorizes digital assets as securities, commodities or a new asset class. It assigns oversight: the SEC will regulate securities, while the CFTC handles commodities. The bill allows tokenized securities to list on qualifying blockchains without SEC registration, raising investor-protection concerns cited by Senator Elizabeth Warren and others. It also imposes market structure rules for exchanges, custodians and service providers to strengthen protections and curb fraud. Supporters, including former President Trump, expect Senate approval, while critics warn of reduced SEC safeguards and new CBDC provisions. Traders should monitor final amendments as compliance shifts and liquidity reallocations could impact tokenized-share trading and overall market stability.
Bullish
The Clarity Act reduces regulatory uncertainty by defining asset categories and assigning clear oversight, which can boost institutional adoption and market liquidity. While short-term volatility may occur around final amendments and compliance adjustments, the improved framework is likely to foster long-term confidence and trading volume in tokenized securities.