The CLARITY Act would establish precisely how the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission regulate digital assets, while also mandating retail financial disclosures and segregation of corporate and customer funds

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In June, the CLARITY ACT, which would strip the U.S. Securities and Exchange Commission of oversight power related to the crypto industry, was cleared by the House Financial Services and Agriculture Committees. That same month, the GENIUS Act was passed by the U.S. Senate. The bill now awaits a vote in the House.

As for a larger market structure bill, the House Financial Services and Agriculture Committees advanced legislation called the Digital Asset Market Clarity Act, or Clarity for short, last month. That bill would create a clear regulatory framework for crypto in part through designating how the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission will regulate. The bill also requires digital asset firms to provide retail financial disclosures and segregate corporate and customer funds.

The CLARITY Act is a more general regulatory framework, aiming to build consumer protection and token classification. Determining whether an asset is a security or commodity is a thorny issue, and this bill could settle many debates.