The CLARITY Act: who regulates crypto — the SEC or the CFTC?
Advancing through Congress — joint SEC/CFTC guidance already issued
The market-structure bill that aims to end the SEC-vs-CFTC turf war over crypto. It sets statutory rules for when a digital asset is a security (SEC) versus a digital commodity (CFTC), replacing years of enforcement-by-litigation with a defined regulatory perimeter.
Key dates
- 2025 — Market-structure effort stalls in the Senate
- 2026-03 — Joint SEC/CFTC interpretive guidance issued
- 2026 — Market-structure package expected to advance
- 2027 — Main rules likely effective (rulemaking up to ~18 months)
For years the central question for any U.S. crypto business has been jurisdictional: is the token a security regulated by the SEC, or a commodity regulated by the CFTC? The CLARITY Act is Congress’s attempt to answer that in statute rather than through case-by-case enforcement, drawing the regulatory perimeter and assigning oversight between the two agencies.
The agencies have not waited for the bill to pass. In March 2026 the SEC and CFTC jointly issued interpretive guidance clarifying that most crypto assets are not securities, and classifying digital commodities, collectibles, utility tokens, and stablecoins as non-securities — a major signal of where the line will fall.
A full market-structure package is expected to advance in 2026 following Senate delays in 2025. The implementing rulemakings could take up to 18 months, with the main rules likely effective in late 2026 or 2027, though provisional CFTC registrations and targeted SEC guidance may phase in sooner.
For exchanges, brokers, and token issuers, the practical effect is a clearer (but new) registration and disclosure map. The work now is to classify your assets and activities against the emerging perimeter and prepare for whichever regulator you fall under.
What to do
- Inventory the assets you list, custody, or issue and classify each as a likely security vs. digital commodity under the emerging tests.
- Identify which regulator (SEC or CFTC) your core activities would fall under and what registration that implies.
- Review the March 2026 joint SEC/CFTC guidance against your current legal positions and disclosures.
- Watch for provisional CFTC registration windows — early movers may get a phased on-ramp.
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Source
Read the primary sourceThis radar entry is educational and does not constitute legal advice. Summaries are AI-assisted and grounded in the linked official source; always verify against the primary source and consult qualified legal counsel for jurisdiction-specific guidance.