Regulatory Clarity

Primary Goal

Enable institutional participation in the crypto space

Impact on Nasdaq

Allows integration of tokenized securities, modernization of market infrastructure (e.g., 24/5 trading), and competition with crypto exchanges

Influencing Factor

Lessons from the Great Financial Crisis regarding systemic risk

Legislative Effort

Digital Asset Market Clarity (CLARITY) Act of 2025

Impact on IPO Market

Could provide alternative public market avenues and address inefficiencies causing companies to stay private longer

CLARITY Act Criticisms

Potential to weaken investor protections, create new systemic risks, and enable regulatory arbitrage

CLARITY Act Key Provisions

Establishes definitions for digital assets/commodities, creates new registration regime for crypto platforms, clarifies jurisdictional boundaries between SEC and CFTC, categorizes crypto assets (digital commodities, investment contract assets, permitted payment stablecoins)

2025-08-00

2025-08-29

Regulatory clarity for digital assets in the U.S. has been a long time coming — and while the path ahead is still unfolding, policymakers have been making meaningful progress this year. A market focus on regulatory tailwinds has likely contributed to Ether outperformance. Ethereum is the market leader for blockchain-based finance and therefore may benefit if regulatory clarity results in greater adoption of stablecoins, tokenized assets, and/or decentralized finance applications. [...] (#_ftnref1) Source: Bloomberg. Data as of August 29, 2025. Past performance not indicative of future results. (#_ftnref2) Source: Bloomberg. Bitcoin all-time high on 8/14; Ether all-time high on 8/24. [...] Last Updated: 9/1/2025 | 16 min. read

The CLARITY Act represents a significant legislative effort to codify a comprehensive and functional regulatory framework for the digital asset ecosystem in the United States. It balances innovation with consumer protection, fosters transparency in network development, and aligns anti-money laundering oversight with existing legal mandates by reinforcing the jurisdiction of both the SEC and CFTC while preserving the foundational authority of the BSA and the US Treasury. [...] As regulatory frameworks like CLARITY emerge globally, TRM Labs works hand-in-hand with regulators, policymakers, and supervisors to build safe, transparent digital asset ecosystems. TRM’s blockchain intelligence platform supports financial intelligence units, securities regulators, and central banks in licensing determinations, risk assessments, and the ongoing supervision of registered entities—helping ensure the promise of crypto is realized without compromising financial integrity or [...] Yesterday, lawmakers in the House Financial Services and Agriculture Committees introduced the bipartisan Digital Asset Market Clarity (CLARITY) Act, a sweeping 200-plus page proposal to bring long-awaited regulatory certainty to the US digital asset ecosystem. The bill establishes definitions for digital assets and commodities, creates a new registration regime for cryptocurrency platforms, outlines jurisdictional boundaries between the Securities and Exchange Commission (SEC) and Commodities

The Digital Asset Market Clarity Act of 2025, commonly known as the CLARITY Act, is comprehensive bipartisan legislation designed to create the first unified regulatory framework for digital assets in the United States. Introduced by House Financial Services Committee Chairman French Hill and supported by both Republican and Democratic lawmakers, this 236-page bill serves as the successor to last year’s FIT21 Act. [...] The CLARITY Act resolves this confusion by establishing clear definitions for different types of digital assets and assigning specific regulatory responsibilities to each agency based on asset characteristics rather than leaving classification to regulatory interpretation. ## Key provisions affecting business operations ### Regulatory jurisdiction and compliance requirements [...] Ready to navigate the evolving crypto regulatory landscape? The CLARITY Act’s provisions will significantly impact how businesses approach digital asset compliance and strategy. Contact BPM’s blockchain and digital assets team to discuss how these regulatory changes might affect your operations and develop a proactive compliance strategy that positions your business for success in the new regulatory environment. ### Javier Salinas

While the CLARITY Act attempts to resolve longstanding regulatory ambiguity, it has drawn criticism from policy experts, investor advocates, and some former regulators who argue that the bill could weaken investor protections and create new systemic risks. Included among the concerns is the opportunity for “regulatory arbitrage.”_3_ Due to carve out of the _investment contract asset_ category that shifts oversight from the SEC to CFTC after initial fundraising, there is a potential for issuers [...] The CLARITY Act seeks to establish a clear regulatory framework for crypto markets and close existing regulatory gaps resulting from regulation by enforcement. At its core, the Act’s principle mechanism to achieve that end is to divide crypto assets into three categories — (1) digital commodities, (2) investment contract assets, and (3) permitted payment stablecoins — and define the regulatory obligations of the CFTC and the SEC based on those categories. The purpose is to separate token-based [...] The Act’s treatment of such secondary market transactions thus provides regulatory clarity for issuers, who are obligated to comply with U.S. securities laws during a capital-raising phase but are divested of such obligations when the tokens circulate and trade post-issuance.