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CLARITY Act Tracker

Track the legislative progress of the CLARITY Act and understand its impact on digital asset regulation.

CLARITY Act

H.R. 1747

Senate Banking Committee

The CLARITY Act establishes a comprehensive framework for digital asset regulation in the United States. It defines clear jurisdictional boundaries between the SEC and CFTC, creates a taxonomy-based classification system for digital assets, and provides a pathway for tokens to transition from security to commodity status as networks become sufficiently decentralized.

Introduced: June 15, 2025
House Passed: November 12, 2025
Sponsors: Rep. Tom Emmer (R-MN), Rep. Darren Soto (D-FL)
Legislative Timeline

Bill introduced in House

Jun 2025

House Financial Services Committee markup

Sep 2025

Passed House floor vote (276-158)

Nov 2025

Referred to Senate Banking Committee

Jan 2026

SEC/CFTC joint taxonomy released (33-11412)

Mar 2026

Senate Banking Committee hearings

Apr 2026

Expected Senate committee vote

Jun 2026

Potential Senate floor vote

Q3 2026

Conference committee / Presidential signature

Q4 2026

Key Provisions

Jurisdictional Clarity

Establishes clear boundaries between SEC and CFTC oversight based on the five-category digital asset taxonomy defined in Release No. 33-11412.

Impact

Tokens classified as Digital Commodities fall under CFTC jurisdiction; Digital Securities remain with the SEC. Eliminates regulatory ambiguity.

Decentralization Safe Harbor

Creates a 3-year safe harbor for digital asset projects to achieve sufficient decentralization, after which tokens may transition from security to commodity classification.

Impact

New projects can operate under temporary SEC oversight while building toward decentralization, then petition for commodity reclassification.

Stablecoin Reserve Requirements

Mandates 1:1 reserve backing for payment stablecoins, monthly attestations by registered auditors, and redemption guarantees.

Impact

Stablecoin issuers must maintain full reserves in cash or short-term U.S. Treasuries and publish monthly proof-of-reserves.

Consumer Protection Standards

Requires digital asset exchanges to implement custody standards, disclosure requirements, and conflict-of-interest policies.

Impact

Exchanges must segregate customer assets, provide clear fee disclosures, and maintain minimum capital requirements.

Tax Clarity

Provides clear guidance on digital asset taxation including a de minimis exemption for small transactions and clarity on staking rewards.

Impact

Transactions under $200 are exempt from capital gains reporting. Staking rewards are taxed as income upon disposition, not receipt.

Innovation Sandbox

Creates a federal regulatory sandbox allowing innovative digital asset projects to operate under limited supervision for up to 2 years.

Impact

Startups can test new models with reduced regulatory burden while maintaining basic consumer protections.

What Changes for Your Token?

Digital Commodities

Clear CFTC oversight. Spot market regulation. Consumer protection standards applied to exchanges.

Digital Securities

SEC jurisdiction maintained. 3-year safe harbor for decentralization. Pathway to commodity reclassification.

Stablecoins

1:1 reserve requirements. Monthly attestations. Redemption guarantees. Banking regulator coordination.

Collectibles & Tools

FTC consumer protection. Marketplace disclosures. Innovation sandbox for novel utility models.

CLARITY Act News

Latest news and legislative milestones