U.S. Legislators Present Biden Administration with Comprehensive Cryptocurrency Regulation Proposal
The latest iteration of the CLARITY Act, known as the Amendment in the Nature of a Substitute (ANS), has been unveiled by the House Financial Services Committee. This updated bill, H.R. 3798, introduces a crucial framework for regulating the digital asset market, particularly affecting developers, DeFi, and U.S. banks.
The Act grants the Commodity Futures Trading Commission (CFTC) exclusive jurisdiction over digital commodity spot markets, including cryptocurrencies classified as digital commodities, while the Securities and Exchange Commission (SEC) retains jurisdiction over investment contracts and ancillary digital assets.
The Act creates a new registration and licensing regime, introducing digital commodity exchanges, brokers, and dealers, all required to register with the CFTC and comply with regulations tailored to digital assets. Issuers raising under $75 million in digital commodities annually may be exempt from SEC registration, and there is provision for dual registration for entities dealing in both securities and digital commodities.
The Act expands the definition of commodity pool operators (CPOs) and commodity trading advisors (CTAs) to include digital asset fund managers and advisers. This imposes significant compliance, reporting, and operational obligations on crypto fund managers and investment advisers, potentially covering many DeFi fund managers.
The Act’s extension of CFTC commodity pool regulations to spot digital commodities could affect digital asset treasury companies, potentially requiring additional registration and regulatory compliance for banks involved with digital asset holdings or management.
The regulatory framework clarifies digital assets' classification and trading rules, affecting DeFi platforms indirectly by defining market conduct and registration obligations for exchanges, brokers, and dealers interacting with these assets.
The Senate Banking Committee is working on complementary legislation, the "Responsible Financial Innovation Act of 2025," to provide additional regulatory clarity, giving the SEC more authority over "ancillary assets." This collaborative rule-making approach between the SEC and CFTC aims to balance innovation encouragement with risk management in the digital asset ecosystem.
However, the bill does not directly address the CLARITY Act's impact on DeFi activities, software, or developers who don't control the blockchain. Critics are concerned about Bitcoin's volatility, and another version of the CLARITY Act is from the House Agriculture Committee, which will mark up separately.
The update adds new banking rules in Section 312(b)-(c) about using digital assets and blockchain. National banks can use digital assets and blockchain to offer any legal services, but they still need to follow existing rules. The bill does not explain which agency, the SEC or the CFTC, is in charge of regulating different types of digital assets, as the CLARITY Act aims to do.
If passed, the U.S. government would start building its own Bitcoin stash, as the new bill aims to turn Trump's plan for a strategic Bitcoin reserve into law. After Tuesday's review, the two versions will be merged into one final bill.
[1] Congressional Research Service, "The CLARITY Act: Overview and Analysis," 2025. [2] House Financial Services Committee, "CLARITY Act of 2025: Text as Amended," 2025. [3] Senate Banking Committee, "Responsible Financial Innovation Act of 2025: Overview and Analysis," 2025. [4] Securities and Exchange Commission, "Digital Asset Securities: Framework for Investment Contract Analysis," 2021. [5] Commodity Futures Trading Commission, "Proposed Interpretive Guidance on Commodity Pool Operators and Commodity Trading Advisors," 2023.
- The CLARITY Act, as amended in H.R. 3798, assigns the Commodity Futures Trading Commission (CFTC) jurisdiction over cryptocurrencies classified as digital commodities, while the Securities and Exchange Commission (SEC) retains control over investment contracts and ancillary digital assets.
- The Amendment in the Nature of a Substitute (ANS) establishes a new registration and licensing regime for digital commodity exchanges, brokers, and dealers, requiring them to comply with regulations tailored for digital assets.
- Options for cryptocurrency trading are indirectly affected by the Act, as it clarifies the classification and trading rules for digital assets, defining market conduct and registration obligations for exchanges, brokers, and dealers interacting with these assets.
- In the business world, the Act has the potential to impact business models involving digital asset treasury companies, requiring additional registration and regulatory compliance for those dealing with digital asset holdings or management.
