The CLARITY Act, formally the Digital Asset Market Clarity Act, is a proposed U.S. cryptocurrency market structure bill that would establish a federal framework for how digital assets are issued, traded and regulated in the United States. The bill focuses on digital asset regulation, including how crypto firms should comply with federal law and which regulators they need to register with.
The CLARITY Act has been moving through Congress since mid-2025, yet even now analysts are divided on whether or not it will be signed into law before the end of 2026.
In this article, we’ll cover the history, contents and controversies of this landmark piece of crypto legislation.
Why Was the CLARITY Act Created?
In simple terms, the CLARITY Act is designed to create a clearer rulebook for crypto. It does not regulate one product, such as stablecoins. Instead, it addresses the broader structure of the crypto market. The U.S. crypto industry has operated for years without comprehensive federal market structure legislation, resulting in disagreements over whether certain digital assets should be treated as securities, commodities or something else.
