TL;DR:
- The U.S. House has passed the FIT21, STABLE, and now CLARITY Acts, marking historic momentum for crypto regulation.
- These bills provide long-awaited clarity for the roles of the SEC and CFTC, and give crypto builders legal certainty.
- The legislation sets a functional classification system for digital assets and safeguards consumer protections.
- The bipartisan effort reflects strong support from both political parties to keep blockchain innovation onshore.
- Congress aims to make the U.S. a global leader in the responsible development of digital assets.
Crypto Regulation Finally Moves Forward in Washington
In a move long anticipated by the blockchain industry, the U.S. Congress is now on the brink of enacting comprehensive legislation to regulate digital assets. This week, the House Financial Services Committee and the House Agriculture Committee both passed the CLARITY Act, adding momentum to a growing framework that already includes the FIT21 and STABLE Acts.
These bipartisan bills aim to give American innovators and investors legal clarity, while also ensuring consumers are protected from bad actors. According to Reps. French Hill, G.T. Thompson, and Tom Emmer, this is a defining moment in America’s digital asset policy.
The Data
| Key Development | Summary | Source |
| FIT21 Passed (May 2024) | Bipartisan bill defining roles of SEC and CFTC, with 71 Democrats in support | CoinDesk |
| STABLE Act (April 2025) | Sets standards for issuance of payment stablecoins | Financial Services Committee |
| CLARITY Act Passed (June 2025) | Provides asset classification framework and regulatory obligations | House Agriculture Committee |
| SEC’s Current Approach | Regulation by enforcement under Biden administration | CoinDesk |
| Global Competitive Threat | U.S. risks falling behind in blockchain innovation | World Economic Forum |
A Fragmented Past, a Clearer Future
Until now, the U.S. digital asset ecosystem has suffered from regulatory ambiguity. Jurisdictional turf wars between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have led to contradictory rules and uneven enforcement.
Under the Biden administration, the SEC pursued a strategy of regulation by enforcement, filing lawsuits rather than offering clear guidance. This approach pushed many crypto startups to relocate offshore in search of more predictable legal environments.
The lack of a federal framework also left retail investors vulnerable, with minimal disclosures and oversight in fast-moving digital markets. The new bills represent a long-overdue attempt to end this legal gray zone and build confidence in the U.S. crypto market.
FIT21: Laying the Groundwork for Market Structure
The Financial Innovation and Technology for the 21st Century (FIT21) Act, passed in May 2024, served as the foundation of the current regulatory reform. The bill not only clarified the division of authority between the SEC and CFTC, but also introduced standards for registration, disclosure, and ongoing compliance.
Most notably, FIT21 gained bipartisan backing, with 71 Democratic representatives voting in favor—signaling a shared belief across the aisle in the need for tailored legislation rather than blanket enforcement.
STABLE Act: Guiding the Future of Payment Stablecoins
Passed in April 2025, the STABLE Act creates rules around issuance and oversight of payment stablecoins—digital tokens pegged to fiat currencies like the U.S. dollar.
Stablecoins have become central to cross-border payments, DeFi protocols, and on-chain finance. But in the absence of clear federal rules, questions around reserves, disclosures, and consumer protection have persisted. The STABLE Act attempts to modernize money movement, allowing innovation to thrive while setting enforceable standards.
CLARITY Act: Functional Classifications and Consumer Safeguards
Most recently, the bipartisan CLARITY Act passed both relevant committees in a coordinated push by Rep. French Hill, Rep. G.T. Thompson, and Rep. Tom Emmer. The legislation offers:
- A functional test for digital asset classification (security, commodity, or other)
- Clear compliance pathways for blockchain builders and exchanges
- Strengthened consumer protections against fraud and malfeasance
These additions help fill in the gaps left by FIT21 and STABLE, turning a fragmented legal environment into a cohesive policy framework.
Why This Matters: Global Race for Blockchain Leadership
Across the globe, other major economies—like the European Union, United Arab Emirates, and Singapore—have implemented forward-thinking crypto regulations. The U.S., despite its early lead in blockchain innovation, has risked falling behind due to policy paralysis.
Rep. Tom Emmer and other co-sponsors argue that leadership in digital asset innovation is a national imperative. Without federal action, the U.S. may lose its position in shaping the technologies underpinning Web3, tokenized finance, and decentralized applications.
What Happens Next?
With all three bills cleared by key committees, attention now shifts to the full House floor and then to the Senate. While some challenges remain, the growing bipartisan consensus improves the odds of final passage.
Lawmakers from both parties agree: now is the time for smart, proactive regulation that protects consumers while allowing innovators to build in the U.S.If enacted, these bills could position the U.S. to lead the global digital economy, rather than play catch-up.
