U.S. digital asset regulation

Key Points:

• The House introduced the Digital Asset Market Clarity Act, redefining U.S. regulation dynamics.
• Proposes clear asset classification and oversight separation.
• Immediate industry impact and potential legal scrutiny.

Digital Asset Market Clarity Act: New U.S. Legislation for Crypto OversightU.S. House Republicans introduced the Digital Asset Market Clarity Act, granting new regulatory powers to the CFTC and addressing digital commodity oversight on May 29, 2025, in Washington, D.C.

This bill potentially rearranges crypto oversight, emphasizing consumer protection while allowing space for innovation.

U.S. House Seeks Clearer Crypto Oversight with New Act

The Digital Asset Market Clarity Act is led by representatives including French Hill, introducing a clearer crypto regulatory framework. The bill proposes the CFTC as the primary authority for digital commodities while crypto platforms must register with either the CFTC or SEC, depending on asset types. The act excludes certain DeFi projects and stablecoins from securities classification and mandates thorough research into DeFi and NFTs within a year.

Notably, the CFTC’s expanded role could greatly alter market dynamics, as previously complicated oversight is divided more clearly between the CFTC and SEC. Crypto platforms gain pathways for temporary CFTC registration and clarified asset custody, reflecting new industry standards.

Market reactions reflect cautious optimism: Representative Ritchie Torres remarked on the importance of the act in setting clear rules, whereas some express concern about integrating the Stablecoin Act and Market Structure Act into broader legislation. The industry maintains focus as the CFTC and SEC adjust to these new responsibilities.

Legislative Changes and Potential Market Impact

Did you know? The FIT21 Act, a regulatory precursor to the CLARITY Act, also sought to address SEC vs. CFTC oversight, setting the stage for ongoing legislative refinement in U.S. crypto regulation.

The Act builds on previous efforts, including the stalled Financial Innovation and Technology Act, yet offers more comprehensive guidelines addressing longstanding SEC vs. CFTC oversight queries. Policymakers aim to mitigate market ambiguity through well-defined regulatory boundaries, with agencies required to clear DeFi and NFT rules within twelve months. French Hill emphasized, “Our bill brings long-overdue clarity, prioritizes consumer protection, and builds on prior Congressional efforts.”

By simplifying digital asset oversight, the Act paves a path for clearer, more equitable market conditions, subject to potential legislative refinements. Experts opinionate on its prospective impact on market liquidity and investor confidence, as clear regulations often spur investment inflows and innovation opportunities. Representative Ritchie Torres stated, “The CLARITY Act will deliver clear rules of the road that entrepreneurs, investors, and consumers deserve.”