Congress Introduces CLARITY Act to Shift Crypto Oversight From SEC to CFTC
The post Congress Introduces CLARITY Act to Shift Crypto Oversight From SEC to CFTC appeared on BitcoinEthereumNews.com. The CLARITY Act reclassifies most digital assets as commodities, transferring regulatory authority from the SEC to the CFTC. The bill introduces a voluntary “mature blockchain system” standard with relaxed rules for compliant digital asset issuers. US Congress introduced the Digital Asset Market Clarity (CLARITY) Act, aiming to redefine how digital assets are regulated in the United States. The bill, unveiled by House lawmakers on Thursday, seeks to transfer most crypto oversight from the Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC). This legislative effort intends to establish open regulatory boundaries for cryptocurrencies and provide a formal legal framework for the industry. Key Regulatory Shift from SEC to CFTC The CLARITY Act proposes amending existing securities laws to exclude most digital assets from the category of securities. Instead, these assets would be classified as “digital commodities,” placing them under the jurisdiction of the CFTC. Under the proposed law, widely known cryptocurrencies like Ethereum, Solana, Cardano, XRP, and Dogecoin would be regulated as commodities. Lawmakers included a broad definition of digital commodities, focusing on assets linked to blockchain systems and used primarily for value transfer within those networks. The bill excludes assets that clearly meet the definition of securities or security derivatives from being considered commodities. However, it does not clarify how regulators should distinguish borderline cases. “Mature Blockchain System” Classification Introduced The bill also introduces the concept of a “mature blockchain system,” a higher regulatory standard for digital asset issuers who opt to comply voluntarily. To qualify, a blockchain must be open source, automated, and resistant to control by any single entity, aside from maintenance or security reasons. Ownership concentration rules prohibit any one party from holding more than 20% of the asset. Despite the added criteria, the bill places no obligation on asset issuers to seek…
The post Congress Introduces CLARITY Act to Shift Crypto Oversight From SEC to CFTC appeared on BitcoinEthereumNews.com.
The CLARITY Act reclassifies most digital assets as commodities, transferring regulatory authority from the SEC to the CFTC. The bill introduces a voluntary “mature blockchain system” standard with relaxed rules for compliant digital asset issuers. US Congress introduced the Digital Asset Market Clarity (CLARITY) Act, aiming to redefine how digital assets are regulated in the United States. The bill, unveiled by House lawmakers on Thursday, seeks to transfer most crypto oversight from the Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC). This legislative effort intends to establish open regulatory boundaries for cryptocurrencies and provide a formal legal framework for the industry. Key Regulatory Shift from SEC to CFTC The CLARITY Act proposes amending existing securities laws to exclude most digital assets from the category of securities. Instead, these assets would be classified as “digital commodities,” placing them under the jurisdiction of the CFTC. Under the proposed law, widely known cryptocurrencies like Ethereum, Solana, Cardano, XRP, and Dogecoin would be regulated as commodities. Lawmakers included a broad definition of digital commodities, focusing on assets linked to blockchain systems and used primarily for value transfer within those networks. The bill excludes assets that clearly meet the definition of securities or security derivatives from being considered commodities. However, it does not clarify how regulators should distinguish borderline cases. “Mature Blockchain System” Classification Introduced The bill also introduces the concept of a “mature blockchain system,” a higher regulatory standard for digital asset issuers who opt to comply voluntarily. To qualify, a blockchain must be open source, automated, and resistant to control by any single entity, aside from maintenance or security reasons. Ownership concentration rules prohibit any one party from holding more than 20% of the asset. Despite the added criteria, the bill places no obligation on asset issuers to seek…
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