The CLARITY Act seeks to end the regulatory overlap between the CFTC and SEC

Digital asset businesses and users would operate under a more stable and predictable framework if the CLARITY Act passes. The legislation seeks to resolve the current regulatory overlap between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), which has created confusion for crypto companies, investors, and developers regarding which rules to follow. CFTC Chairman Michael S. Selig told the House Committee on Agriculture that he is "optimistic that Congress will soon send this landmark legislation to the President's desk."

Industry leaders including Coinbase CEO Brian Armstrong and Ripple CEO Brad Garlinghouse have urged lawmakers to fast-track the bill, arguing that continued delays risk driving innovation offshore. Selig noted that while the act would clarify rules, it would not reduce enforcement pressure. Regarding fraud, manipulation, and insider trading, Selig stated, "We will find you and the full force of the law will come to bear."

Progress has slowed as the Senate Banking Committee shifted focus to Federal Reserve nomination hearings. Some reports suggest lawmakers have until the second week of May to move the bill through committee stages before it reaches the full Senate.