The CLARITY Act aims to replace SEC and CFTC jurisdictional overlap with a codified classification structure for digital assets

Financial institutions gain confidence in integrating blockchain-based liquidity solutions like XRP into operations when legal uncertainty is reduced for institutional investors. This reduction in uncertainty stems from clearer compliance guidelines for exchanges, custodians, and blockchain developers. These guidelines are established by the CLARITY Act, which replaces case-by-case enforcement with standardized rules. The act defines which digital assets are securities and which are commodities, resolving the overlapping authority claims of the Securities and Exchange Commission and the Commodity Futures Trading Commission. Lawmakers plan to present the bill to the Senate Banking Committee this week. The committee reviews, debates, and amends legislation before a full Senate vote. Senator Bill Hagerty indicated the legislation could advance out of committee by late April 2026.