Crypto: What The Clarity Act Is Actually Trying To Clarify In Crypto Markets

The CLARITY Act aims to address the crypto market structure. See how it approaches token classification, exchanges, disclosures and regulatory oversight.

The CLARITY Act aims to address years of regulatory uncertainty with a structured framework that clearly defines digital assets, intermediary roles and disclosure obligations.

It places most spot trading of qualifying tokens under CFTC oversight, while keeping the SEC responsible for primary offerings, disclosures and investor protections.

The bill focuses on regulating activities as much as assets, setting registration and conduct standards for exchanges, brokers and dealers to strengthen market integrity and transparency.

The GENIUS Act governs stablecoins, while the CLARITY Act applies only in complementary areas, such as disclosures and any reward-related features tied to stablecoin use.

The CLARITY Act (Digital Asset Market Clarity Act of 2025) aims to break the industry’s legislative logjam through a two-pronged approach that defines what digital assets are and delegates oversight based on how they function in the marketplace. The legislation moves beyond ad hoc enforcement and instead proposes a comprehensive framework for asset classification, intermediary roles and mandatory disclosures.

This article explains what the CLARITY Act is and why it matters, outlines its objectives and examines how it proposes to govern stablecoins. It also covers the concept of mature blockchains, key arguments against the CLARITY Act and its current legislative status.

The CLARITY Act addresses a long-standing issue in the crypto space: regulatory uncertainty.

For several years, digital asset companies have faced a confusing overlap between the US Securities and Exchange Commission (SEC) and the US Commodity Futures Trading Commission (CFTC). The SEC often treats many tokens as securities, whereas the CFTC classifies them as commodities. This ambiguity has slowed innovation, complicated compliance, frustrated investors and created confusion for crypto businesses.

The CLARITY Act aims to resolve this logjam by establishing clear definitions for digital assets and assigning regulatory responsibilities based on the type of asset and activity involved. A predefined framework allows market participants to understand applicable rules upfront rather than facing uncertainty driven by enforcement actions.

Source: CoinTelegraph