CLARITY Act: Washington’s Crypto Bill Set to Limit State Oversight and Boost DeFi Freedom

The crypto world has long struggled with confusing rules. Who controls what? The SEC or the CFTC? States or the federal government? A new bill called the CLARITY Act aims to fix this. Short for Digital Asset Market Clarity Act of 2025, it has passed the House and heads to the Senate soon. This could change how crypto works in the US.

What is the CLARITY Act?

The wants to end fights between regulators. It sets clear rules for digital assets. Some tokens start as securities but become commodities later. The bill creates paths for trading venues to register. It also protects DeFi from heavy rules.

Two big parts stand out:

  1. DeFi Carve-Out: Protects people running blockchain basics.
  2. State Preemption: Limits state power over certain crypto…

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