The US officially closes the 10-year controversy: The CLARITY bill wins 294 votes in favor, ready to move to the Senate

On December 10th, at the Blockchain Association Policy Summit, Senators Gillibrand and Lummis announced a key piece of news: The Cryptocurrency Market Structure (CLARITY Act) draft will be unveiled later this week, entering review and voting in the Senate next week. This marks a significant milestone in the decade-long legislative battle over the classification of digital assets.

From Power Struggles to Clear Regulatory Framework

Uncertainty over asset classification—whether they are securities or commodities—has been the “Achilles’ heel” of the US crypto industry. The SEC and CFTC have been vying for oversight, creating regulatory gaps that leave companies unsure of compliance.

The Cryptocurrency Market Structure Act for the first time delineates legal boundaries between the two agencies. Instead of applying a “one size fits all” model, the bill establishes a classification framework, assigning CFTC to oversee digital commodity derivatives markets, while SEC focuses on token issuance and fundraising activities with securities characteristics.

Core Structure of the Bill: Three Main Pillars

Pillar 1: Differentiating “Digital Commodities” and “Digital Securities”

Most native tokens issued on decentralized blockchains will be classified as “digital commodities,” specifically managed by the CFTC. Only tokens that pass the Howey test—demonstrating typical investment contract features—will continue to fall under SEC securities regulation.

Pillar 2: Clear Path for Mature Blockchains

The bill sets a “mature blockchain” standard: when a network reaches a high level of decentralization (with no entity controlling more than 20% of the total supply or validation rights, and value primarily derives from actual use), it will be exempt from SEC registration requirements. This ensures leading assets like Bitcoin and Ethereum are not hindered by burdensome securities regulations.

Pillar 3: Fully Submitting Derivatives Markets to CFTC

All digital commodity trading platforms (gspot or derivatives) must register with the CFTC. The bill also provides a “temporary registration” channel lasting 360 days, allowing current platforms to transition without being forced to shut down due to technical violations during the transition period.

Financial Pathway for Crypto Startups

To balance innovation incentives and investor protection, the bill permits mature blockchain token issuers— even if considered “investment contracts”—to apply for securities registration exemptions. However, annual fundraising caps are set at $75 million, along with stricter disclosure requirements. This mechanism creates a feasible pathway for new companies without opening the floodgates to excessive risk.

Coordinated Action: SEC and CFTC Step by Step

To avoid future “regulatory gaps” or overlapping jurisdictions, the bill mandates the establishment of a Joint Advisory Committee composed of both agencies. Any rulemaking that affects the scope of one agency must formally respond to the recommendations from this committee. This ensures systematic cooperation rather than jurisdictional disputes.

In particular, the bill also protects the DeFi ecosystem by excluding frontend developers, node validators, miners, and other non-custodial roles from the definition of “broker” or “dealer,” thereby reducing compliance burdens at the protocol layer.

New Appointments: Pro-Crypto Signals from the Government

The progress of the bill is closely tied to staffing at key US regulatory agencies. Paul Atkins, nominated as SEC Chair, in an interview said that US resistance to cryptocurrency “has lasted too long.” He views the Cryptocurrency Market Structure Act as part of “Project Crypto”—a comprehensive effort to bring order through legislation and regulation.

On December 5th, Caroline D. Pham, Acting CFTC Chair, announced that spot crypto products are now permitted to trade on CFTC-regulated futures platforms. This move is part of a plan to make the US a “global crypto hub,” providing a regulated domestic market to address the lack of protections on foreign platforms.

Additionally, Trump has also nominated Brian Quintenz—a former crypto lawyer at Willkie Farr & Gallagher, who represented many blockchain companies—to serve as CFTC Chair. From March 2025, he will serve as Chief Legal Advisor to the SEC Crypto Working Group, reporting directly to Atkins.

Meanwhile, Travis Hill, a publicly pro-crypto advocate, has been nominated as FDIC Chair—serving as a bridge between banking and crypto. Hill has publicly supported banks engaging in crypto custody and stablecoin issuance, believing it could improve financial access. His appointment may facilitate banks entering the crypto space.

The Overall Legal Landscape

The Cryptocurrency Market Structure Bill does not stand alone. It complements the Stablecoin Innovation Act that Trump signed earlier this year, which provides a framework for stablecoin issuance. Together, these bills form a comprehensive legislative picture for the crypto industry, filling structural gaps and positioning the US from a “follower” to a “leader” in global crypto regulation.

Market Impact

With 294 bipartisan votes in the House on July 17th, the Cryptocurrency Market Structure Act demonstrates strong bipartisan consensus. This regulatory clarity is expected to attract larger institutional capital, reduce compliance concerns, and create structural opportunities for the US crypto ecosystem.

However, challenges remain: detailed DeFi regulation, international standards, and consistent enforcement. But for the global crypto industry, this is not just an American story—it’s a pivotal window opening opportunities for structural development across the sector.