Explainer: How the Clarity Act could transform crypto regulation in the US
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The proposed Clarity Act seeks to define regulatory roles for U.S. agencies overseeing the crypto industry, aiming to balance wider digital asset adoption with investor protections. Key provisions include barring senior U.S. political leaders from issuing or sponsoring digital assets until January 2029, restricting rewards on idle stablecoin balances to prevent bank deposit diversion, and classifying crypto exchanges and brokers as financial institutions under the Bank Secrecy Act for AML compliance. The bill also offers crypto firms a fundraising exemption of up to $50 million annually (lifetime cap of $200 million) without SEC registration, and sets legal criteria for DeFi platforms to qualify as decentralized.