The headline previously published on this page was wrong. Congress has considered legislation that would allocate digital-asset responsibilities between the Securities and Exchange Commission and the Commodity Futures Trading Commission. It does not abolish the SEC or remove the agency from all crypto oversight.
As of this article’s August 2, 2026 review, the CLARITY Act had advanced in Congress but had not completed the full legislative process and become law. Readers should check the official bill record for developments after that date.
What the CLARITY Act is
The House introduced H.R. 3633, the Digital Asset Market Clarity Act of 2025, in May 2025. The House passed it on July 17, 2025 by 294–134 and sent it to the Senate. Senate committees subsequently developed and advanced their own market-structure text.
The central policy problem is that digital assets can involve different activities: fundraising by an issuer, secondary trading, derivatives, custody, brokerage and payment. Existing securities and commodities laws do not assign every activity to one regulator based only on the word “crypto.”
The proposed framework tries to define digital commodities, registration routes and the respective roles of the two market regulators. Legislative text can change during committee and floor consideration, so a summary of an earlier draft is not a substitute for the version being voted on.
What would move toward the CFTC
The House bill would give the CFTC a central role over spot-market activity involving qualifying digital commodities. It sets out registration and conduct requirements for digital-commodity exchanges, brokers and dealers, including recordkeeping, trade monitoring and treatment of customer assets.
That is a significant expansion because the CFTC has long regulated derivatives markets but has not had the same comprehensive statutory framework for all spot crypto platforms.
“CFTC role” does not mean “no regulation.” Registered intermediaries would face federal requirements, and anti-money-laundering obligations would continue through separate law and regulators.
What would remain with the SEC
The Congressional Research Service explains that the proposal preserves SEC authority in important areas. These include aspects of primary-market fundraising and transactions involving securities. The bill also provides roles for SEC-registered alternative trading systems, broker-dealers and national securities exchanges in certain digital-commodity activity.
The SEC would therefore not disappear from crypto oversight. The legal status of an asset or transaction would still matter, and a company could not avoid securities law simply by using blockchain terminology.
The draft framework also contemplates coordination between the SEC and CFTC. Dividing jurisdiction can clarify some responsibilities while creating new boundaries that agencies and courts must interpret.
Why the old article was unreliable
The previous article used an unnamed “senior Senate aide,” attributed a quotation to Senator Cynthia Lummis without a source and claimed that the Senate wanted the SEC “removed.” It linked only to agency homepages and generic news sections, not the bill.
It also described policy outcomes as if enactment were inevitable. A bill must pass both chambers in identical form and be signed by the president, or Congress must override a veto. Committee approval or placement on a calendar is not the same as enactment.
Status as of August 2, 2026
The Senate Banking Committee released market-structure text in May 2026 for committee consideration. The legislative effort continued through the summer, with unresolved negotiations and floor scheduling still relevant at the end of July.
Because the status was moving rapidly, this article does not predict a passage date. The authoritative checks are:
- the actions tab on Congress.gov for H.R. 3633;
- Senate floor and committee records;
- the exact enrolled text if both chambers pass a final version;
- a presidential signing statement or veto message.
Do not rely on a token promoter’s countdown or an article that equates a scheduled vote with a signed law.
What the proposal could mean for market participants
If enacted, the final law could create registration paths and conduct rules for intermediaries that currently navigate overlapping federal and state requirements. It could also change disclosures and the treatment of some secondary-market transactions.
The effects would depend on definitions, agency rulemaking, implementation dates and litigation. “Regulatory clarity” does not guarantee that every token gains commodity status, that every exchange can serve U.S. customers or that prices rise.
Investors would still face fraud, custody failures, conflicts, cyber incidents, liquidity risk and token-specific legal questions. A change in lead regulator does not insure customer assets or validate an investment.
How to read crypto legislation accurately
Use this hierarchy of evidence:
- Enacted law: authenticated public law and final statutory text.
- Passed bill: chamber vote and exact version passed.
- Committee action: report, markup vote and amended text.
- Discussion draft: a proposal that may never receive a vote.
- Press release: the sponsor’s explanation, which may emphasize benefits.
- Industry commentary: useful perspective, not legal status.
When a summary says an asset is a commodity or security, inspect the statutory definition and exceptions. Legal treatment can depend on the transaction, issuer conduct and decentralization criteria rather than the token name alone.
Bottom line
The U.S. crypto market-structure debate is about allocating and defining authority, not eliminating the SEC. The CLARITY Act would give the CFTC a larger role in digital-commodity spot markets while preserving SEC responsibilities for securities and parts of the proposed framework.
As of August 2, 2026, the proposal was not yet a completed law. Any newer claim should be verified against the official Congress.gov action record before it is treated as fact.
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Sources and review
This article was checked against the primary or authoritative sources below on .
- H.R. 3633 — Digital Asset Market Clarity Act of 2025 — Congress.gov
- Crypto legislation: an overview of H.R. 3633 — Congressional Research Service
- Senate Banking Committee releases market-structure bill text — U.S. Senate Committee on Banking, Housing, and Urban Affairs
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