The U.S. House Financial Services Committee held a full committee hearing to examine its digital asset market structure framework, the CLARITY Act, with Chairman French Hill framing the bill as a route to a functional federal regulatory regime for digital assets. He argued that the proposal is intended to strengthen consumer and investor protections while encouraging innovation in the United States by reducing regulatory uncertainty. Hill said digital assets currently lack a federal framework and that unclear jurisdictional boundaries between the Securities and Exchange Commission and the Commodity Futures Trading Commission have left market participants uncertain. He highlighted requests and litigation seeking clarity from the SEC and cited concerns about a “regulation by enforcement” approach contributing to some firms moving operations outside the United States. He said the CLARITY Act would establish a codified exemption pathway for digital commodity projects to raise capital, support secondary market trading, and enable SEC-registered entities to participate in digital commodity markets. He encouraged members to use the hearing to identify areas of consensus and refine provisions as work on digital asset market structure legislation continues.
U.S. Financial Services Committee 2025-06-04
U.S. House Financial Services Committee holds hearing on CLARITY Act framework for digital asset market structure
The U.S. House Financial Services Committee held a hearing on the CLARITY Act, aimed at establishing a federal regulatory framework for digital assets. Chairman French Hill emphasized reducing regulatory uncertainty and strengthening consumer protections while fostering innovation. The Act proposes a codified exemption pathway for digital commodity projects and seeks to clarify jurisdictional boundaries between the Securities and Exchange Commission and the Commodity Futures Trading Commission.