New Delhi: The global crypto industry has long operated in a regulatory grey zone, particularly in the United States where overlapping jurisdiction between regulators created persistent uncertainty. The Digital Asset Market Clarity Act of 2025 commonly referred to as the CLARITY Act represents one of the most significant legislative attempts to resolve this ambiguity, in terms of who the regulator will be. Recent developments around the Act signal both progress and friction, underscoring the complexities of regulating a rapidly evolving financial ecosystem.

CLARITY Act seeks to establish a comprehensive market structure for crypto assets by clearly delineating regulatory responsibilities between the Securities and…