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What is the CLARITY Act?

By Ben Tabas, Intrica Research · Updated · US

Answer

The CLARITY Act, H.R. 3633, is a U.S. bill that would give the CFTC primary oversight of digital commodities and their spot markets while the SEC keeps digital securities. The House passed it 294 to 134 on July 17, 2025, per the House Clerk, and a Senate cloture vote failed 49 to 50 on Sept. 15, 2026, per the Senate Press Gallery's floor log. As of Oct. 28, 2026, it is not law.

What the bill would do

Orrick's Oct. 2, 2026 summary says the bill would give the CFTC primary responsibility for digital commodities and the spot markets and intermediaries that trade them. The SEC would keep authority over digital securities and certain primary market sales. The bill would also preempt a range of state requirements for activity inside the federal framework.

The Block's explainer, dated June 19, 2026, says the bill sets benchmarks for when a network is decentralized enough that its token stops being treated as a security. It treats DeFi protocols as infrastructure, so they would not register as intermediaries.

Senators amended the bill to ban passive yield payouts on stablecoins by issuers and third party platforms. Activity based rewards on exchanges and DeFi protocols stay allowed, per the same explainer.

Where it stands

  1. July 17, 2025: the House passed H.R. 3633 by 294 to 134, per House roll call 199.
  2. May 14, 2026: the Senate Banking Committee advanced it 15 to 9. Democrats Ruben Gallego and Angela Alsobrooks voted yes, per CoinDesk that day.
  3. Sept. 15, 2026: the Senate did not invoke cloture on the motion to proceed, 49 to 50, with 60 votes needed. Senator Tillis voted no so he could move to reconsider, per the Senate Press Gallery's floor log.
  4. Oct. 2, 2026: Orrick wrote that the midterms shorten the Senate calendar and that passage in this Congress is widely viewed as unlikely.
  5. Oct. 28, 2026: the bill had not passed the Senate and was not law.

What it means for a crypto company

  • Rules made under existing authority set the terms until a market structure law passes. The SEC and CFTC issued a joint interpretation on March 17, 2026 that sorts crypto assets into five categories, per Jenner & Block on March 20, 2026.
  • Orrick reported on Oct. 2, 2026 that the CFTC had sent a crypto asset rulemaking to the White House for review. Comments on the SEC's proposed Regulation Crypto Assets were open until Oct. 20, 2026.
  • The bill stalled over ethics rules for officials' crypto holdings and over stablecoin yield, per Orrick. Watch those two points if the Senate takes it up again after the November 2026 midterms.

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Sources

  1. Roll Call 199, H.R. 3633, On Passage · Clerk of the U.S. House of Representatives, July 17, 2025Supports: The House passed H.R. 3633 by 294 to 134 on July 17, 2025.
  2. Tuesday, September 15, 2026 · U.S. Senate Daily Press, Sept. 15, 2026Supports: The Senate did not invoke cloture on the motion to proceed, 49 to 50, and Senator Tillis voted no to move to reconsider.
  3. Clarity Act clears U.S. Senate committee, on its way to a final test in Congress · CoinDesk, May 14, 2026Supports: The Senate Banking Committee approved the bill 15 to 9 with two Democratic votes.
  4. What Is the CLARITY Act? The Crypto Market Structure Bill Explained · The Block, June 19, 2026Supports: Decentralization benchmarks, DeFi treatment and the stablecoin passive yield ban in the amended bill.
  5. The CLARITY Act Stalls in the Senate: What's Next for Digital Asset Regulation · Orrick, Oct. 2, 2026Supports: CFTC and SEC split, state preemption, the ethics and yield disputes, and the outlook and agency rulemaking after the failed vote.
  6. SEC and CFTC Issue Landmark Joint Interpretation on Crypto Asset Classification · Jenner & Block, March 20, 2026Supports: The SEC and CFTC joint interpretation of March 17, 2026 and its five category taxonomy.

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General information, not legal advice.

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