In a major step toward U.S. crypto regulation, the House Agriculture Committee has passed the Digital Asset Market Structure bill, commonly known as the CLARITY Act, with a 47–6 vote. The wide margin signals strong bipartisan backing for a framework that could reshape how digital asset firms operate under federal law.
Introduced in May, the bill aims to establish clear regulatory boundaries between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Its approval marks the furthest the legislation has advanced and sets the stage for a full House vote.
Committee Chair GT Thompson stated that lawmakers opposing aspects of the bill will still have the opportunity to submit written dissent. Designed to end the jurisdictional confusion that has long plagued the crypto sector, the CLARITY Act addresses whether digital assets fall under securities or commodities law—a question that has spurred repeated legal clashes between the SEC and the industry.
Parallel discussions also took place in the House Financial Services Committee, where lawmakers considered an amendment to shield blockchain developers from being classified as financial intermediaries. Although no vote had taken place at the time of reporting, the proposed provision aims to distinguish open-source developers from centralized operators in regulatory terms.
The CLARITY Act’s momentum coincides with the Senate’s forthcoming vote on the GENIUS Act, which focuses on stablecoin regulation. Together, the two bills could provide the most comprehensive digital asset legislation the U.S. has seen.
Trump Ties and Bailout Fears Surface in Debate
As the CLARITY Act advanced, it triggered contentious exchanges in the House Financial Services Committee. Lawmakers clashed over amendments touching on ethics, political entanglements, and the potential for future financial bailouts.
Representative Maxine Waters, the committee’s ranking Democrat, argued for language addressing the influence of former President Donald Trump, who has recently become linked to several crypto ventures. Waters warned that without explicit safeguards, the bill could indirectly benefit Trump and his network—turning public policy into a vehicle for private gain.
Meanwhile, Representative Brad Sherman proposed a different amendment focused on the perceived risk of implicit bailouts. He accused Republican lawmakers of crafting a bill that allows the crypto industry to become systemically important without barring future government rescues.
“The purpose of the CLARITY Act is to build a superhighway to crypto becoming so significant that it poses a systemic risk,” Sherman said.
“And then make sure every Republican can say they’re against bailouts while preserving mechanisms that allow them.”
Both amendments ultimately failed to gain sufficient support during a voice vote, but the heated exchanges revealed the deep ideological divisions surrounding crypto legislation.
French Hill Counters Bailout Criticism
Amid the debate, Representative French Hill defended the intent behind the CLARITY Act, pushing back against claims that it could open the door to future bailouts. Speaking during the committee hearing, Hill said his proposed amendment, which supports protections for blockchain developers, was not about shielding wrongdoers but about clarifying oversight boundaries.
“This bill isn’t about bailouts. It’s about bringing clarity to when a digital asset falls under SEC jurisdiction versus when it’s a commodity overseen by the CFTC,” Hill stated.
The hearing also revisited the collapse of FTX in 2022, which continues to be a touchstone in discussions around crypto regulation. Lawmakers remained split on whether that crisis stemmed from enforcement failures or a lack of legislative direction.
Although the proposed amendments from Waters and Sherman were voted down, their arguments highlighted persistent uncertainty about how to regulate crypto without stifling innovation or exposing taxpayers to new risks.
Quick Facts
- The House Agriculture Committee passed the CLARITY Act with a 47–6 vote, marking significant progress toward a unified crypto framework.
- The bill aims to define when digital assets fall under SEC versus CFTC oversight, addressing long-standing jurisdictional ambiguity.
- Amendments proposed by Maxine Waters and Brad Sherman focused on ethical concerns and potential industry bailouts but failed to pass.
- The Senate is preparing to vote on the GENIUS Act, which would regulate stablecoins; together with CLARITY, it could form a broad digital asset policy.
