Senator Cynthia Lummis has released the combined text of the CLARITY Act in a 616-page document. The draft unifies proposals from the Senate Banking Committee, which passed a 15-9 vote on May 14, with commodity market provisions put forward by the Senate Agriculture Committee. The bill retains legislative designation H.R. 3633, keeping the same legislative vehicle approved by the House of Representatives by a 294-134 vote in July 2025.
The document is more than just a revision of earlier circulating drafts. The new text incorporates ethics rules for government officials, a framework for new enforcement tools, and includes 25 dedicated sections targeting sanctions and closing anti-money laundering loopholes in the crypto sector.
Three Asset Classes and a Fast-Track Exemption
The most fundamental change lies in its classification system. The bill divides digital assets into three core taxonomies. The first group covers digital commodities under CFTC oversight. The second group encompasses investment contract assets regulated by the SEC. The third group consists of payment stablecoins, which follow provisions under the GENIUS Act enacted in July 2025.
For crypto projects seeking to transition into digital commodities, the draft establishes a maturity certification pathway. Issuers can submit a notice to the SEC stating that their digital asset has reached or will achieve functional maturity or sufficient decentralization within the next four years. Once this certification test is met, regulatory authority over the asset shifts directly to the CFTC.
However, this lengthy process does not apply to legacy names. Section 10101 of the document ensures that any token serving as the underlying asset for an ETP on a national securities exchange prior to January 1, 2026, is immediately classified as a non-security. This exempt status takes effect the day the president signs the bill into law, bypassing any certification process, and cannot be overturned through new SEC rulemaking. Bitcoin, Ether, XRP, SOL, and DOGE are confirmed to fall under this exemption umbrella.
Operational Relief and Execution Roadblocks
To accommodate the transition period, the Senate included registration relief through a Regulation Crypto framework. This rule exempts eligible token projects from full SEC registration requirements, provided fundraising is capped at $50 million per calendar year over a four-year period, or no more than 10% of the total value of tokens in circulation.
Digital commodity exchanges and brokers will also not need to shut down. They can register with the CFTC under a provisional registration regime, allowing operations to continue while regulators draft final guidance.
Yet this relief faces an implementation bottleneck. The CLARITY Act cannot become fully operational until the SEC finishes formulating its execution rules. The issue remains that the regulatory agency has consistently lagged in issuing timely technical guidance for the crypto sector. The market is now left waiting to see how long these written rules will take to translate into actual enforcement on the ground.
Reported by crypto.news.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
