Crypto glossary
Crypto market structure bill (CLARITY Act)
The CLARITY Act is a US crypto market structure bill that splits oversight between the SEC and CFTC and defines when tokens count as digital commodities.
The Digital Asset Market Clarity Act, known as the CLARITY Act, passed the US House of Representatives in July 2025 with bipartisan support. It builds on an earlier House bill, FIT21, and aims to end years of dispute over which agency regulates crypto. In broad terms, it gives the CFTC authority over spot markets in digital commodities and the intermediaries that trade them, keeps the SEC in charge of investment contracts and capital raising, and creates a path for tokens to be treated as digital commodities once their blockchain is sufficiently mature or decentralised.
The bill also sets registration categories for exchanges, brokers and dealers, rules on customer asset segregation and disclosure requirements for token issuers. The Senate worked on its own text, and in September 2026 a procedural vote to take up the bill fell short of the 60 votes needed (49–50), so as of November 2026 it had not become law. Any final version could differ in definitions and in how DeFi and software developers are treated.
The industry treats market structure legislation as the main missing piece of US crypto law after the 2025 GENIUS Act on stablecoins. Critics argue the decentralisation tests are vague and could let projects escape securities rules too easily.
Example
A US token project that raised money through a sale plans its roadmap around the CLARITY Act's maturity test, hoping its token will be treated as a digital commodity once control is decentralised.
Related terms
Latest articles on Crypto market structure bill
- Scaramucci Blames Trump Memecoins for CLARITY Act Setback
- CFTC Pushes Crypto Exchange Registration Plan Forward After CLARITY Act Stalls
- BitGo CEO Warns Clarity Act Failure Leaves US Crypto Exposed to Combined Roles
- Bitwise CIO Matt Hougan Says Clarity Act Setback Accelerated Crypto Rules
- Why Could Banks and Dubai Benefit From the CLARITY Act’s Senate Failure?
