House Financial Services Committee Statement on the CLARITY Act The House Financial Services Committee's official statement outlining the CLARITY Act's goals for establishing clear regulatory boundaries between the SEC and CFTC for digital assets.
January 2026
Source: House Financial Services Committee

What Is the Committee's Position?

The House Financial Services Committee issued this statement to explain the rationale and goals of the CLARITY Act. The Committee emphasizes that the legislation addresses a fundamental barrier to digital asset market development in the United States: the lack of clear regulatory jurisdiction.

According to the Committee, the CLARITY Act provides the certainty that market participants, investors, and regulators need to operate effectively in the digital asset space.

What Are the Committee's Key Points?

Ending Regulatory Ambiguity

  • Current system leaves market participants guessing about applicable rules
  • Enforcement actions have been inconsistent and unpredictable
  • Innovation has moved offshore due to regulatory uncertainty
  • CLARITY provides clear, prospective rules for all participants

Legislative Process

  • Legislation developed through extensive cross-party negotiation
  • Input from industry, regulators, and consumer advocates
  • Balances innovation with investor protection
  • Represents comprehensive market structure reform

Complementing GENIUS Act

  • CLARITY addresses non-stablecoin digital assets
  • Together with GENIUS, creates complete federal framework
  • Coordinated approach to digital asset regulation
  • Both Acts signed into law July 2025

How Does the Committee View Market Structure?

Clear Jurisdictional Lines

  • SEC oversees digital asset securities and their markets
  • CFTC oversees digital commodities and derivatives
  • Functional test determines asset classification
  • Coordination mechanisms prevent regulatory gaps

Trading Platform Standards

  • Registration requirements for digital asset exchanges
  • Customer asset protection and segregation
  • Market surveillance and manipulation prevention
  • Operational resilience requirements

Intermediary Regulation

  • Broker-dealer registration for digital asset intermediaries
  • Custody standards and best execution requirements
  • Conflict of interest management
  • Customer disclosure obligations

What Consumer Protections Does the Committee Highlight?

Disclosure Requirements

  • Clear information about digital asset risks
  • Issuer disclosure for token offerings
  • Trading platform fee and risk disclosure
  • Plain language requirements for retail investors

Asset Protection

  • Customer asset segregation requirements
  • Prohibition on commingling with firm assets
  • Custody standards for digital asset holdings
  • Insolvency protections for customer assets

Enforcement Authority

  • Clear enforcement authority for SEC and CFTC
  • Anti-fraud provisions applicable to digital assets
  • Market manipulation prohibitions
  • Coordination with state regulators and DOJ

How Does the Act Support Innovation?

Development Safe Harbor

  • 3-year safe harbor for token development projects
  • Allows building without immediate registration burden
  • Conditions ensure good faith toward decentralization
  • Progress reporting requirements

Decentralization Pathway

  • Clear criteria for transitioning from security to commodity
  • Recognizes that projects mature over time
  • Encourages actual decentralization, not just claims
  • Certification process for commodity status

Regulatory Sandboxes

  • Authority for SEC and CFTC to create innovation programs
  • Testing new products with regulatory oversight
  • Path to full compliance after testing
  • Coordination with state sandbox programs

What Should Financial Institutions Consider?

Immediate Actions

  • Review current digital asset activities for classification
  • Determine primary regulator (SEC or CFTC)
  • Assess registration requirements
  • Evaluate compliance infrastructure needs

Strategic Planning

  • Clearer rules enable product development roadmaps
  • Institutional services now have compliance pathway
  • Competitive landscape will shift as compliance requirements clarify
  • Consider early mover advantages in compliant market structure

The Coinbax Perspective

The Committee's statement emphasizes a crucial point: regulatory uncertainty has been the primary barrier to institutional digital asset adoption in the United States. Banks and financial institutions couldn't build compliant services when the rules were unclear.

CLARITY changes that equation. With defined jurisdictional boundaries, registration pathways, and consumer protections, institutions can now develop digital asset strategies with regulatory confidence.

As statutory law, the framework provides the regulatory stability that long-term business planning requires.

Frequently Asked Questions

When was the CLARITY Act passed?

The CLARITY Act was signed into law in July 2025, alongside the GENIUS Act for stablecoins. Together, they form the comprehensive US federal framework for digital assets.

What was the Committee's main concern before CLARITY?

The Committee identified "regulation by enforcement" as the primary problem—where market participants couldn't know the rules until they were sued. CLARITY establishes clear, prospective regulations.

Does CLARITY apply to stablecoins?

No. Stablecoins are regulated under the GENIUS Act. CLARITY addresses other digital assets—tokens that may be securities or commodities based on their characteristics and use.

How does this affect existing crypto businesses?

Existing businesses have transition provisions to come into compliance. The legislation provides safe harbors during the compliance period and pathways for registration or commodity certification.