A new bill in Washington, the Digital Asset Market Clarity Act of 2025 (CLARITY Act), aims to address the regulation of crypto markets. Having cleared the House, the bill is now headed to the Senate for a January markup. Key provisions include a carve-out for decentralized finance (DeFi) activities, excluding certain infrastructure operations from being regulated as intermediaries. Additionally, a preemption clause would classify "digital commodities" as "covered securities," potentially overriding state-by-state requirements for crypto firms. The bill seeks to clarify the roles of the SEC and CFTC and establish a registration path for crypto liquidity venues. However, concerns remain about defining DeFi and ensuring investor protection as state regulators may be displaced.

A new bill in Washington, the Digital Asset Market Clarity Act of 2025 (CLARITY Act), aims to address the regulation of crypto markets. Having cleared the House, the bill is now headed to the Senate for a January markup. Key provisions include a carve-out for decentralized finance (DeFi) activities, excluding certain infrastructure operations from being regulated as intermediaries. Additionally, a preemption clause would classify "digital commodities" as "covered securities," potentially overriding state-by-state requirements for crypto firms. The bill seeks to clarify the roles of the SEC and CFTC and establish a registration path for crypto liquidity venues. However, concerns remain about defining DeFi and ensuring investor protection as state regulators may be displaced.