It sounds like science fiction, but what blocks that scenario is not
technology. It is a legal question without a clear answer:
if a large company creates a digital asset, who regulates it?
That is exactly what the CLARITY Act tries to settle.
The problem that came before
For years that question had no single answer. In some cases the
Securities and Exchange Commission (SEC), which regulates
securities, stepped in. In others it was the Commodity Futures Trading
Commission (CFTC), which regulates commodities and their derivatives.
That uncertainty stalled a lot of projects. Not through prohibition, but
through something simpler: no large company spends years and millions building
something without knowing which rules it will operate under.
What the CLARITY Act does
At first glance it looks like one more crypto bill. Its aim is broader: it
defines when a digital asset can stop being treated as a security and
move to a different regulatory framework, provided it meets certain
requirements — among them, reaching a sufficient degree of decentralization.
| Before | With the CLARITY Act |
|---|
| No single test for whether a digital asset is a security |
Defined criteria for when it stops being one |
| Unclear split of authority between SEC and CFTC |
A more defined division of responsibilities |
| Projects stalled by legal uncertainty |
A predictable framework for building digital assets |
What it does NOT mean. It does not mean thousands of new
coins appear tomorrow, or that any company can issue a cryptocurrency without
meeting rules. It means part of the uncertainty that existed until now goes
away.
What it could enable
With clearer rules, the range of uses opens well beyond speculation:
- Loyalty programs built on blockchain.
- New payment systems.
- Digital assets inside private platforms.
There is also a piece that rarely gets mentioned: the bill would also
bar public officials from issuing their own digital assets. In a
field where conflicts of interest have been a recurring problem, that is not a
minor detail.
Where the bill stands today
Update as of August 20, 2026. When the video was published,
the bill was expected to be voted on before the August recess. It did not
happen: the Senate reached the August 7 recess without resolving it, with open
points on illicit finance, agriculture and an ethics provision. On August 8 the
first procedural stage of the vote was opened and the vote was
pushed to September. If it does not advance then, the calendar
pushes it past the midterm elections.
That is why what matters is not what the CLARITY Act allows today — today it
allows nothing, because it is not law yet — but what it would enable if it
passes.
If that framework advances, the debate will stop revolving around Bitcoin and
Ethereum alone. The conversation will shift to how large companies fold digital
assets into their own ecosystems. And that answer does not exist yet.
There is one consequence that goes well beyond payments: what would happen if
those assets had to be backed by Treasury bonds. We work through it in
this separate
piece.
None of this is legal advice or an investment recommendation. See our
legal notice.
Frequently asked questions
What is the CLARITY Act?
A US bill that defines when a digital asset stops being treated as a security and moves to a different regulatory framework, provided it meets certain requirements — among them a sufficient degree of decentralization. It also draws a clearer line between the authority of the SEC and the CFTC.
Why does it matter who regulates a cryptocurrency?
Because no large company spends years and millions building something without knowing which rules it will operate under. For years the SEC stepped in some cases and the CFTC in others, and that uncertainty stalled projects — not through prohibition, but through the lack of a predictable framework.
Has the CLARITY Act passed?
No. It was expected to be voted on before the August 2026 legislative recess, and the Senate reached the August 7 recess without resolving it, with open points such as illicit financing. Until it passes, the split of authority stays exactly as it was.
