Clarity Act would shift U.S. crypto oversight to CFTC

The Senate is scheduled to vote on the Digital Asset Market Clarity Act after the bill narrowly cleared a key Senate Banking Committee vote. The measure would legalize the bulk of cryptocurrency activity in the United States and move regulation of many tokens and trading platforms to the Commodity Futures Trading Commission.

The draft legislation defines new categories of digital assets, grants exemptions for projects judged sufficiently decentralized, and sets rules for decentralized finance platforms. It would require crypto firms to take steps aimed at curbing money laundering and sanctions evasion, and it would adjust how securities laws apply to many tokens, including retroactive changes.

Senate Banking Committee members advanced the bill after a close vote. Committee Chair Tim Scott blocked an amendment from Sen. Elizabeth Warren that would have tightened language on DeFi and illicit finance. Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets, outlined a White House timeline that targets a Senate floor vote in June and House passage before July 4, with a presidential signature afterward.

Supporters say the Clarity Act would provide a single federal framework and encourage institutional participation by placing many digital assets under the CFTC rather than the Securities and Exchange Commission. Kristin Smith, president of the Solana Policy Institute, argued that the United States has long led on financial regulation and that other countries watch Washington’s approach to crypto. Cody Carbone, CEO of Digital Chamber, warned that failing to pass the bill would risk ceding regulatory leadership to jurisdictions that already have crypto frameworks.

Opponents say the bill could weaken global anti‑money‑laundering standards and make it easier for criminals to move funds across borders. Sen. Elizabeth Warren warned that loosening rules could aid terrorists, cartels and other criminal groups seeking to evade sanctions and launder money. Bartlett Naylor of Public Citizen noted that some countries have intentionally adopted light rules to attract crypto businesses and questioned whether stronger U.S. legislation alone would stop regulatory arbitrage.

The Clarity Act follows last year’s GENIUS Act, which created a federal stablecoin framework. After that law, the UK, South Korea, Canada, Hong Kong and Japan moved to update or create stablecoin rules. Proponents argue a broader federal statute could prompt similar international changes and give firms clearer compliance paths; critics say shifting oversight could reduce protections provided under securities law.

A final Senate vote will determine whether the Clarity Act becomes law and whether the United States establishes a unified regulatory standard for digital assets or leaves key questions unresolved as other countries continue to set their own rules.