Crypto Asset Legislation Under Review in the U.S. Congress — What You Need to Know

Today, the U.S. Congress Banking and Financial Services Committee is reviewing a landmark bill aimed at establishing a clearer legal framework for the crypto industry and defining more transparent regulatory standards.

Known as the Digital Asset Market CLARITY Act, the proposed legislation is considered a major development for the digital asset market and is expected to address the long-standing legal uncertainty surrounding the sector.

Who Will Be the Regulator?

One of the key objectives of the legislation is to resolve the jurisdictional dispute between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The new framework introduces a decentralization test that will determine the legal status of a crypto asset.

If a project is deemed sufficiently decentralized and is not controlled by a specific group for private benefit, it will be classified as a digital commodity and fall under the jurisdiction of the CFTC. If an asset does not meet these criteria, it will remain subject to stricter regulatory oversight by the SEC.

Most importantly, under this framework, Bitcoin and Ethereum are expected to be treated as digital commodities, rather than securities.

What Changes for Stablecoins?

The bill also significantly reshapes the legal treatment of stablecoins. Under the proposed rules, stablecoins would primarily be recognized as payment instruments, limiting the ability to offer direct yield or interest on them.

The intention behind this measure is to reduce the risk of deposit outflows from the traditional banking system. At the same time, stablecoins would receive a clearer regulatory status as supervised payment instruments, potentially supporting their broader adoption.

Relief for Startups

The CLARITY Act also introduces a special exemption regime designed to simplify capital raising for crypto projects. Under the proposal, digital asset projects would be allowed to raise up to $75 million within a 12-month period without undergoing the SEC’s standard and more complex registration process.

The mechanism is intended to reduce bureaucratic barriers and encourage innovation across the industry. Until now, many crypto startups were required to comply with traditional public company registration standards, often leading to legal disputes and regulatory penalties.

What Could the CLARITY Act Mean for the Industry?

From a long-term perspective, the CLARITY Act could serve as a positive signal for institutional capital entering the crypto market. The introduction of clearer rules may create greater confidence for large financial institutions, pension funds, and banks considering exposure to digital assets.

In addition, the legislation is expected to strengthen investor protection, improve market transparency, and enhance anti-fraud standards across the sector.

While some industry participants may view the regulations as overly strict, many experts believe this level of legal clarity is necessary for the sustainable development of the crypto industry and its integration into the broader financial and investment ecosystem.

Potential Market Impact

Market participants believe that the introduction of clearer regulations could have a positive impact on overall market sentiment. Greater regulatory clarity is often viewed as a key factor for increasing institutional participation, which may support liquidity and long-term market stability.

In the short term, the market response will likely depend on how quickly the legislation progresses and how the final regulatory framework is implemented. However, many analysts view the CLARITY Act as a potentially important step toward broader institutional adoption of digital assets in the United States.

Please note: crypto value is volatile and involves risks. Before purchasing crypto, carefully review the risks, rules and conditions.

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