Regulators and Crypto Stakeholders Align on Historic Clarity Path

Cardano founder Charles Hoskinson has expressed optimism following a recent roundtable discussion in Washington, D.C., centered on the CLARITY Act, a legislative effort aimed at providing regulatory clarity for digital assets in the United States. The meeting, organized by the Senate Banking Committee, brought together key industry players, including Ripple, venture capital firm Andreessen Horowitz (A16Z), and representatives from firms like Coinbase, Kraken, Paradigm, Circle, and Multicoin Capital. According to Hoskinson, the roundtable marked "great progress" in the development of a coherent and bipartisan legislative framework for the crypto industry.

The CLARITY Act, formally titled the Digital Asset Market Structure Clarity Act, was introduced in May 2025 and passed by the House in July with a vote of 294–134. The bill seeks to clarify the regulatory boundaries between the Securities and Exchange Commission (SEC) and the Commodity Futures and Trading Commission (CFTC), with the SEC overseeing investment contracts and the CFTC managing commodities and trading activities. The legislation also introduces definitions for digital assets and outlines the responsibilities of exchanges, brokers, and custodians. Among its key provisions is the introduction of “investment contract assets,” which allows certain tokens to transition from securities to commodities as they become decentralized.

The roundtable provided an opportunity for lawmakers to engage directly with industry leaders and understand the practical implications of the proposed legislation. Participants emphasized the need for a regulatory environment that encourages innovation while protecting investors. Ripple and A16Z were highlighted for their strong advocacy during the discussions. Ripple, in particular, has been a vocal proponent of the CLARITY Act due to its ongoing legal battles with the SEC over the classification of its XRP token. Monica Long, Ripple’s President, praised the growing collaboration between lawmakers and the industry, calling blockchain technology a “financial revolution” that is on the cusp of integration into the broader financial system.

The meeting also focused on refining the Senate’s draft of the market structure bill, which includes unique elements such as the definition of “ancillary assets.” This term refers to intangible, commercially fungible assets that are tied to investment contracts and distinguish tokens that lack traditional shareholder rights. The Senate draft also allows issuers to self-certify digital assets as non-securities, with the SEC retaining the authority to challenge these designations within a 60-day window. These provisions aim to create a flexible and adaptable regulatory framework that can evolve alongside the industry.

The Senate Banking Committee, chaired by Tim Scott (R-SC), has set a goal to vote on the SEC-related portions of the legislation by September 30. Meanwhile, the Senate Agriculture Committee, which oversees the CFTC, is expected to release its draft in early September. Once both committees finalize their versions, the bills will need to be reconciled before advancing to the Senate floor. Final passage will require bipartisan support, as the Senate operates under a 60-vote threshold.

Industry stakeholders remain cautiously optimistic, with many believing that 2025–2026 will be a pivotal period for U.S. crypto regulation. The recent legislative developments align with broader global trends, as countries like the European Union and Singapore continue to refine their regulatory approaches. The U.S. is positioning itself to become a leader in digital asset innovation, with the CLARITY Act representing a significant step toward creating a predictable and transparent market structure.

Despite the progress, challenges remain. Critics, including some SEC commissioners and Democratic lawmakers, have raised concerns about potential regulatory gaps and investor protection risks. They argue that shifting oversight from the SEC to the CFTC could weaken enforcement capabilities and allow unregulated fundraising through commodity tokens. These concerns highlight the need for ongoing dialogue between regulators, lawmakers, and industry participants as the legislative process unfolds.

The roundtable, therefore, serves as a milestone in the evolving regulatory landscape for digital assets. It underscores the importance of collaboration and stakeholder engagement in shaping a framework that balances innovation with accountability. As the CLARITY Act moves through the legislative process, the industry will continue to monitor developments closely, with the ultimate goal of achieving a regulatory environment that supports growth, transparency, and long-term stability in the digital asset space.