What the CLARITY Act Is and Why It Matters
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The Digital Asset Market Clarity Act of 2025, known as the CLARITY Act, is designed to end years of regulatory uncertainty in the US crypto market. For much of the past decade, digital asset companies have operated under overlapping and often conflicting oversight from the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
The CLARITY Act proposes a structured framework that clearly defines digital assets and assigns oversight based on how they function in the market. Rather than relying on enforcement actions after the fact, the bill aims to give companies and investors clear rules upfront.
By establishing predictable regulatory boundaries, the legislation seeks to reduce compliance confusion, support innovation and strengthen investor confidence across US digital asset markets.