Banks Position for Digital-Asset Regulatory Framework Ahead of CLARITY Act Passage

The CLARITY Act seeks to create the first comprehensive US market structure for digital assets, defining when tokens should be treated as securities or commodities and dividing oversight between the Securities and Exchange Commission and Commodity Futures Trading Commission. Its significance extends beyond jurisdictional lines: negotiations over stablecoins and decentralized finance could determine whether Congress can deliver durable rules for an industry still operating under fragmented enforcement and guidance.

The Senate majority leader has moved to initiate a procedural vote, positioning the bill for a possible full-chamber vote as early as mid-September. The White House has pledged to push CLARITY across the “finish line” in September, but resistance is mounting. Senator Ruben Gallego has urged colleagues not to rush the measure, Galaxy cut its estimated odds of passage to 10%, and the CFTC and SEC are exploring joint regulatory steps should Congress fail to act.

The CLARITY Act is Washington’s attempt to replace case-by-case crypto enforcement with a federal market-structure regime, dividing responsibility between the Securities and Exchange Commission and Commodity Futures Trading Commission while setting rules for trading venues, intermediaries, custody and disclosure. For real-world asset tokenization, the bill does not turn tokenized stocks, bonds or property interests into unregulated products: treatment still follows the underlying rights and issuance structure. Clearer jurisdiction could nevertheless lower legal costs, deepen liquidity and make blockchain settlement easier for institutions.

Blockchain Association said in its latest rebuttal to The Wall Street Journal that CLARITY would promote competition and cut friction through tokenized stocks and bonds. The House passed H.R. 3633 on July 17, 2025, by 294-134, and the Senate Banking Committee advanced a revised bill on May 14, 2026, by 15-9. As of Aug. 6, no full Senate vote had been scheduled, with ethics rules governing officials’ crypto interests still a central obstacle; until enactment, tokenized securities remain subject to existing SEC requirements.

The CLARITY Act aims to create the first federal market regulatory framework for U.S. digital assets, chiefly by defining the respective jurisdictions of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). If enacted, the bill would affect token classification, trading-platform compliance and investor protection. It is also a key part of the Trump administration’s effort to institutionalize cryptocurrency policy.

White House crypto adviser Patrick Witt said officials were pushing to complete the legislation by July 4, 2026. The Senate Banking Committee is expected to hold a markup in May before sending the bill to the Senate floor in June. However, four disputed issues — including stablecoin yield mechanisms and ethics provisions for public officials — still require a bipartisan compromise. The estimated chance of passage has fallen below 50%, while one reporter said the legislative process could make meeting the deadline difficult.

The US Digital Asset Market Clarity Act (H.R. 3633) seeks to divide regulatory authority between the Securities and Exchange Commission and the Commodity Futures Trading Commission. Users of self-custody wallets control their own private keys. Treating software providers that do not control assets as financial intermediaries could restrict innovation in blockchain payments and leave less room for integration with compliance systems.

The House passed the bill on July 17, 2025. The Senate Banking Committee then voted 15–9 on May 14, 2026, to advance it to the full Senate. WalletConnect CEO Jess Houlgrave argued on June 4 that the bill should also establish a safe harbor for self-custody infrastructure and that regulation should target intermediaries that actually hold or control assets.