Bipartisan lawmakers roll out CLARITY Act, shift crypto spot rule to CFTC

House Financial Services Committee Chairman French Hill introduced the Digital Asset Market Clarity Act on May 29, a bipartisan measure that would place most cryptocurrencies under a unified federal regime and draw clear lines between securities law and commodity oversight.

The 249-page bill defines “digital commodity,” “investment-contract asset,” “mature blockchain system,” and “permitted payment stablecoin.” Then, it amends the Securities Act, Exchange Act, and Commodity Exchange Act to embed those terms.

Hill called the proposal “long-overdue clarity for the digital asset ecosystem” and said he aims to send it to President Trump “to secure America’s position as the global leader in digital assets.”

Framework details

Primary token offerings may rely on a four-year safe harbor if the underlying network reaches “mature” status and the issuer’s total raise stays below $75 million during any 12-month window. 

Once certified, secondary trades by parties other than the issuer fall outside securities jurisdiction, aiming to eliminate what it classified as Howey-based uncertainty for exchange listings.

Spot trading, brokerage, and custody of digital commodities would move to exclusive Commodity Futures Trading Commission (CFTC) supervision, while the proposal maintains dual oversight for hybrid products that combine securities. 

At the Securities and Exchange Commission (SEC), alternative trading systems and broker-dealers that handle only digital commodities would file a notice rather than obtain a new license. 

In contrast, native crypto venues must complete provisional CFTC registration within 180 days and join a self-regulatory organization. The measure also keeps bank-regulated payment stablecoins outside commodity rules and folds crypto intermediaries into Bank Secrecy Act obligations.

Bipartisan backing

Agriculture Committee Chairman G.T. Thompson said the bill “delivers the certainty entrepreneurs and markets need.” 

House Majority Whip Tom Emmer labeled the legislation “a bold step” to keep the next iteration of the internet in US hands. 

Digital-asset subcommittee chairs Bryan Steil and Dusty Johnson both argued that the act “democratizes” access and “gives markets the clarity they need to thrive.”

Ohio Republican Warren Davidson pointed to safeguards for self-custody and transaction freedom, noting that he has pursued statutory clarity since 2018. 

Democratic co-sponsors Angie Craig, Ritchie Torres, and Don Davis framed the bill as a  consumer-protection and inclusion policy, with Craig stressing “rules of the road for businesses” and Torres saying the text “closes regulatory gaps.”

The introduction follows a May 5 discussion draft and a bipartisan roundtable held the following day, which tested key concepts with industry and academic witnesses. 

House Financial Services and Agriculture committees now plan joint markups before sending the measure to the floor.

Additionally, House leaders will next schedule committee votes, after which the measure could advance to the full chamber for consideration.

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