House passes CLARITY Act in major win for crypto regulation originally appeared on TheStreet.
The U.S. House of Representatives has officially passed the Digital Asset Market Structure Clarity Act — a landmark bill that aims to settle the long-standing confusion around how cryptocurrencies should be classified in the U.S. financial system.
The legislation formally splits regulatory oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) — classifying digital assets as either securities or “digital commodities.”
Under the new structure, the SEC will oversee tokens that meet securities criteria, while digital commodities will fall under the CFTC’s jurisdiction.
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The bill also attempts to define “sufficient decentralization,” clarifying that blockchains without individual control — and with transparent, public operations — can be treated as commodities. However, critics argue the bill still leaves gaps, particularly around decentralized finance (DeFi).
Part of a trio of crypto-related bills debated during “Crypto Week,” the CLARITY Act establishes a framework for designating digital assets as either securities, under SEC oversight, or commodities, overseen by the CFTC.
The bill’s passage comes just days after Bitcoin hit a new all-time high above $120,000, boosted in part by expectations that Congress would finally move to define crypto’s place in the financial system. The act is now expected to advance to the Senate for consideration.
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House passes CLARITY Act in major win for crypto regulation first appeared on TheStreet on Jul 17, 2025
This story was originally reported by TheStreet on Jul 17, 2025, where it first appeared.