The CLARITY Act's Regulatory Divide Between the SEC and CFTC Ends Institutional Ambiguity

Institutional investors, asset managers, and hedge funds now face a path to compliant access to crypto. Banks gain safe entry into crypto custody, while exchanges face reduced enforcement risk and higher trading liquidity. These outcomes are part of the the CLARITY Act, which divides crypto oversight between the CFTC for digital commodities and the SEC for the SEC for securities-like activities. This division of labor ends years of regulatory ambiguity that has pushed crypto development toward Abu Dhabi, Singapore, and other jurisdictions with clearer rules. The push for passage is accelerating as the current US administration is pro-digital asset. Senator Cynthia Lummis has urged lawmakers to pass the bill. A key obstacle to compromise on stablecoin yields has been removed by the White House economists, who published findings this week that stablecoin rewards would have a minimal impact on bank deposits.