Why Crypto Firms Want the U.S. Congress to Pass the CLARITY Act

How Clear Rules Could Transform the U.S. Crypto Market and Drive Innovation

In early 2026 many leading cryptocurrency companies and industry advocates stepped up their calls for the U.S. Congress to pass the Digital Asset Market Clarity Act, commonly known as the CLARITY Act. The central reason behind this push is simple: crypto firms say the current regulatory environment in the United States is murky, inconsistent, and discourages investment, innovation, and global competitiveness. Without clear rules that define how digital assets are regulated, firms are hamstrung by uncertainty about what counts as a security or a commodity, which regulators have authority, and what compliance obligations they actually face.

The CLARITY Act was introduced in 2025 and passed the U.S. House of Representatives with bipartisan support, after receiving votes of 294 to 134 that showed broad political backing for clearer crypto regulation. The bill has since moved to the Senate, where lawmakers are debating its provisions and considering amendments that could affect how the digital asset ecosystem is governed.

Industry leaders argue that the lack of regulatory clarity has real economic consequences. Many firms complain that ambiguous rules have slowed institutional adoption and forced projects to seek compliant operating jurisdictions overseas. As one executive from a major crypto firm put it, the CLARITY Act is not just about avoiding lawsuits — it is about unlocking institutional business models that are currently stalled by regulatory opacity. Clear legal definitions of digital asset classifications and which agency is responsible for oversight could, proponents say, create predictable pathways for compliance and investment.

At the heart of the CLARITY Act is a framework meant to end the longstanding jurisdictional tug-of-war between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Under current law there is no uniform definition of what constitutes a “security” or a “commodity” in the context of digital assets. In practice the SEC has often treated many tokens as securities, while other parts of the industry argue that clear rules would allow many digital assets to be treated as digital commodities subject to CFTC oversight instead. The CLARITY Act seeks to resolve that ambiguity by providing statutory definitions and assigning regulatory roles accordingly.

Another important feature of the bill relates to decentralized finance (DeFi). Supporters of the CLARITY Act argue that current regulatory approaches sometimes treat decentralized infrastructure like wallets, nodes, relayers, and liquidity pools as if they were centralized intermediaries simply because they are the points of interaction for users. The CLARITY Act contains language designed to exclude these infrastructure activities from being automatically regulated as if they were centralized financial intermediaries, reducing the risk of compressive regulatory burdens that could stifle innovation in DeFi.