US Crypto Market Structure Takes Center Stage with CLARITY Act Progress

The CLARITY Act has become a pivotal piece of legislation in the US Congress, aiming to create a framework for digital assets. The bill proposes dividing oversight between the SEC and CFTC, providing clearer rules for token fundraising, consumer protection, illicit finance compliance, and institutional adoption.

The proposed legislation would create a framework for digital commodities, placing exchanges, brokers, and dealers under CFTC supervision. At the same time, it would preserve SEC authority over digital asset activity tied to securities platforms.

The bill also introduces a clear path for token fundraising, allowing eligible companies to raise up to $50 million per calendar year for four years, with a cap of 10% of outstanding ancillary asset value and $200 million gross proceeds. This would create a defined capital formation pathway without treating every token distribution like a traditional public securities offering.

The CLARITY Act also includes provisions for consumer protection, trade monitoring, recordkeeping, and restrictions on commingling customer assets. Insiders would face resale restrictions to reduce manipulation, insider trading, and token dumping risks.