U.S. House Introduces CLARITY Act, Potentially Reclassifying Most Cryptocurrencies as Commodities

On the 29th, U.S. House representatives introduced the Digital Asset Market Transparency Act (CLARITY Act) in a bipartisan effort. This act follows the Financial Innovation and Technology Act of the 21st Century (FIT21). The CLARITY Act aims to explicitly exclude the majority of cryptocurrencies from the definition of securities and shift their regulatory oversight from the Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC). According to the current wording of the bill, digital assets 'inherently tied to blockchain systems' that are used among participants of the blockchain system to transfer value, among other criteria, would be affected.