Congress is working to advance the CLARITY Act, formally known as the Digital Asset Market Clarity Act (H.R. 3633), toward a Senate vote before the August recess. The bill passed the House 294-134 in July 2025 and cleared the Senate Banking Committee 15-9 in May 2026. Supporters aim to establish a federal regulatory framework that assigns decentralized cryptocurrencies like Bitcoin and Ethereum to CFTC oversight while keeping tokenized securities under SEC jurisdiction. The legislation seeks to resolve the jurisdictional uncertainty that has challenged crypto companies and developers. The push reflects urgency among lawmakers to finalize major crypto regulation before the summer session closes.
CLARITY Act Proposes CFTC-SEC Jurisdictional Split and $150 Million Fraud Enforcement Fund
The bill's core provision assigns decentralized cryptocurrencies such as Bitcoin and Ethereum to CFTC supervision as digital commodities. Tokenized securities and investment contracts would remain under SEC authority. The legislation includes a $150 million allocation to law enforcement agencies tasked with combating fraud and pursuing bad actors in the digital asset space.
Senator Lummis and Congressional Allies Advocate for Pre-Recess Action
Senator Cynthia Lummis has framed the legislation in terms of enforcement capability. She wrote on X on June 17, 2026: "You cannot prosecute fraud in a market with no rules. The Clarity Act gives law enforcement the standards they need to make cases stick." Senators Bill Hagerty and Tim Scott have also supported moving quickly. Congressional leaders have signaled urgency to address major crypto regulation items before the summer session closes. Representative Dusty Johnson indicated the House is ready to act if the Senate proceeds.
Senate Procedural Hurdles Require 60-Vote Threshold for Passage
The bill will likely need 60 votes in the Senate to clear a filibuster, requiring bipartisan support. Ongoing debates around stablecoin regulation, market oversight, and unresolved political negotiations could affect the timeline. Supporters have expressed cautious optimism about the bill's momentum.
Industry Stakeholders View Bill as Defining Federal Framework Effort
For the digital asset industry, the CLARITY Act represents a credible effort at establishing a coherent federal framework. The legislation aims to reduce legal risk and provide clear jurisdictional lines for investors and developers. The bill has become a central piece of crypto regulation discussion in Washington.
FAQ
What did the CLARITY Act vote counts show in the House and Senate Banking Committee?
The CLARITY Act passed the House 294-134 in July 2025 and cleared the Senate Banking Committee 15-9 in May 2026.
How does the CLARITY Act divide regulatory authority between the CFTC and SEC?
The bill assigns decentralized cryptocurrencies like Bitcoin and Ethereum to CFTC supervision as digital commodities, while tokenized securities and investment contracts remain under SEC authority.
What procedural requirement does the CLARITY Act face in the Senate?
The bill will likely need 60 votes in the Senate to clear a filibuster, requiring bipartisan support for passage.
