CLARITY Act Gains Bipartisan Backing to Regulate US Crypto Markets

The bipartisan CLARITY Act defines SEC and CFTC roles while boosting investor protections and supporting U.S. crypto innovation.

Lawmakers push the CLARITY Act to resolve agency conflicts, ensure transparency, and set clear rules for digital asset firms.

With strong bipartisan support, the CLARITY Act and GENIUS Act signal a major shift toward comprehensive U.S. crypto regulation.

Stuart Alderoty, Ripple’s Chief Legal Officer, praised the introduction of the bipartisan CLARITY Act on X. He described it as a “big step forward” in the push for smart and effective crypto regulation in the United States. The Digital Asset Market Clarity Act of 2025, now formally introduced in Congress, seeks to address regulatory confusion in digital assets. The bill, backed by leaders from both parties, defines roles for both the SEC and CFTC. It also builds on momentum from previous efforts like the FIT21 Act. Lawmakers are pushing to ensure strong investor protection, transparency, and innovation in the growing crypto ecosystem.

Key Focus: Market Oversight and Compliance

Representative French Hill formally announced the bill’s introduction on May 29. He emphasized its importance in protecting consumers while supporting innovation. The CLARITY Act defines clear agency responsibilities over digital assets, which lawmakers have long debated. It aims to resolve the jurisdictional battle between the SEC and CFTC.

Moreover, the bill outlines new registration and compliance rules for crypto service providers. Developers must offer transparent disclosures on ownership and protocol operations. Brokers and dealers must register and follow detailed operational standards.

Additionally, the bill mandates customer asset segregation and stronger conflict-of-interest controls. Firms must also provide clear risk disclosures to users. These steps, according to sponsors, are critical in fostering market integrity.

Political Support and Legislative Momentum

Lawmakers from both sides of the aisle back the bill. Democratic Representatives like Ritchie Torres and Angie Craig support it, joining Republicans such as Dusty Johnson and Warren Davidson. Torres said the Act would give entrepreneurs and investors the clear rules they deserve.

This bill follows previous Congressional efforts such as the FIT21 Act, which passed in the House but stalled in the Senate. Furthermore, market structure talks began in April within the Digital Assets and Financial Technology Subcommittee.Besides the CLARITY Act, Congress is also advancing the GENIUS Act, which focuses on stablecoins. That bill recently passed a procedural vote in the Senate. Consequently, lawmakers now hope to pass both bills before year-end.

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