The Crypto Market Structure Bill known as the Digital Asset Market Clarity (CLARITY) Act aims to resolve jurisdictional ambiguity between the SEC and CFTC, define digital asset classification and custody rules, and strengthen consumer protections

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The bill covers the roles of both the United States Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) on digital assets oversight, seeking to resolve longstanding questions about which agency oversees which types of digital assets.

The new bill sets the standard for such a custodian as one under "adequate supervision and appropriate regulation by certain federal, state, or foreign authorities" — a bar the CFTC will be called to define.

Democratic co-sponsors Angie Craig, Ritchie Torres, and Don Davis framed the bill as a consumer-protection and inclusion policy, with Craig stressing “rules of the road for businesses” and Torres saying the text “closes regulatory gaps.”

Per its latest language, any digital asset “intrinsically linked to a blockchain system” should be considered a digital commodity, so long as it is used, for instance, to “transfer value between participants in the blockchain system.” That definition covers the vast majority of popular cryptocurrencies, including Ethereum, Solana, Cardano, XRP, and Dogecoin.

“I am proud to introduce the bipartisan CLARITY Act with my colleagues,” Hill said in a May 29 statement. “Our bill brings long-overdue clarity to the digital asset ecosystem, prioritizes consumer protection and American innovation, and builds off our work in the 118th Congress.”