Key facts
- The CLARITY Act aims to split regulatory oversight of digital assets between the SEC and CFTC.
- The bill classifies most common tokens as 'digital commodities' under CFTC jurisdiction.
- Tokens akin to traditional investment contracts will remain under SEC oversight.
- The CLARITY Act has cleared the Senate Banking Committee with bipartisan support.
- Coinbase views the Act as a significant financial regulatory bill, comparable to Dodd-Frank.
Regulatory uncertainty has been a significant challenge for the digital asset industry in the United States, with the SEC and CFTC often perceived as having overlapping or conflicting jurisdictions. The CLARITY Act seeks to provide clear legal parameters for market participants, potentially fostering innovation and attracting institutional investment by defining which agency has authority over different types of digital assets. Proponents believe this clarity is crucial for the US to maintain its competitive edge in the global financial landscape.