Bipartisan Lawmakers Introduce CLARITY Act to Shift Crypto Spot Rules to CFTC

House Financial Services Committee Chairman French Hill unveiled the Digital Asset Market Clarity Act on May 29, a bipartisan initiative designed to establish a unified federal framework for cryptocurrencies. The legislation delineates key terms such as "digital commodity," "investment-contract asset," and "permitted payment stablecoin," while amending existing securities and commodities laws to incorporate these definitions.

The proposal includes a four-year SAFE harbor for primary token offerings, provided the underlying network achieves "mature" status and the issuer’s fundraising remains below $75 million within any 12-month period. Secondary trades WOULD fall outside securities jurisdiction, addressing longstanding uncertainty around exchange listings under the Howey test.

Spot trading, brokerage, and custody of digital commodities would transition to exclusive CFTC oversight, though hybrid products combining securities would remain under dual supervision. Hill framed the bill as critical for maintaining U.S. leadership in digital assets, with intentions to send it to the President for approval.