CLARITY Act takes center stage, throws SEC-CFTC feud into focus

• The CLARITY Act clarifies the roles of the SEC and CFTC in digital asset regulation.
• Bill gains bipartisan backing, advancing alongside the GENIUS Act in Congress.

In a significant move toward regulatory transparency, U.S. Representative French Hill has unveiled the “Digital Asset Market Clarity Act of 2025,” which aims to end years of uncertainty surrounding crypto oversight.

Backed by bipartisan support, the bill includes three Democratic co-sponsors. It also includes split responsibilities between the SEC and the CFTC in the digital asset space.

This long-awaited move marks a step toward a structured, consistent regulatory framework for cryptocurrencies in the U.S.

CLARITY Act explained

Remarking on the same, in a statement on the 29th of May, Hill said,

“I am proud to introduce the bipartisan CLARITY Act with my colleagues. Our bill brings long-overdue clarity to the digital asset ecosystem, prioritizes consumer protection and American innovation, and builds off our work in the 118th Congress.”

The three Democratic lawmakers supporting the bill were Angie Craig, Ritchie Torres, and Don Davis, alongside Republican sponsors.

That said, the bill’s language broadly defines digital assets “intrinsically linked to a blockchain system” as digital commodities, provided they are primarily used to transfer value within that system.

This sweeping definition potentially brings nearly all major cryptocurrencies, including Ethereum [ETH], Solana [SOL], Cardano [ADA], Ripple [XRP], and Dogecoin [DOGE], under the Commodity Futures Trading Commission’s purview.

However, there’s a catch.

Assets that qualify as securities remain the SEC’s turf, but the bill offers no sharp line for when something stops being a commodity and becomes a security.

That gray zone may still spark debate.

Ripple’s legal chief weighs in

As expected, Ripple’s Chief Legal Officer, Stuart Alderoty, welcomed the legislation, calling it a meaningful advancement in crypto oversight.

He emphasized, 

“A big step forward: the bipartisan CLARITY Act builds on momentum for comprehensive crypto rules in the U.S.

The broader takeaway?

As the CLARITY Act heads for a full markup by the House Financial Services Committee on the 10th of June, efforts toward comprehensive crypto regulation are steadily gaining traction.

Interestingly, the bill’s progress runs in parallel with the GENIUS Act, which targets stablecoins. That bill recently cleared a key Senate vote, with 66 in favor—another sign of bipartisan support for clear crypto rules.