The New Order of US Encryption Regulation: From the Genius Act to the CLARITY Act

Recently, there have been three important developments in the field of cryptocurrency regulation in the United States: the Genius Act, the Anti-CBDC Act, and the CLARITY Act. The Genius Act specifically targets stablecoin regulation and has officially become law. The CLARITY Act focuses on the basic definitions and authority allocation of cryptocurrencies, especially regarding public chains, DeFi, token issuance, etc., while also clarifying the responsibilities of the SEC and CFTC. This act is closely related to the FIT21 Act of 2024.

These bills collectively construct a comprehensive encryption regulatory framework in the United States. Understanding future regulatory trends requires a review of past regulatory history.

From Financial Liberalization to Encryption Regulation

After the 2008 financial crisis, the Obama administration appointed Gary Gensler as the chairman of the CFTC to regulate the derivatives market. The Dodd-Frank Act, enacted in 2010, brought derivatives under regulation.

In 2021, the Biden administration reappointed Gensler as the SEC chairman, beginning to focus on the cryptocurrency sector. The SEC considers all other tokens except BTC and ETH to be illegal securities. At the same time, it took regulatory action against the high leverage practices of exchanges.

However, after the SEC's partial defeat in the Ripple case in 2024, it ultimately approved the Bitcoin spot ETF. This marks the beginning of the encryption industry breaking through regulatory restrictions.

CLARITY Act: Naming Encryption Correctly

In 2025, after taking office, Trump fired Gensler and appointed Paul Atkins as his successor, ushering in a more free regulatory environment. Against this backdrop, the CLARITY Act emerged.

The bill provides a framework design for digital goods, digital assets, and stablecoins.

1. Define stablecoins as payment tools
2. Digital commodities are regulated by the CFTC.
3. Digital assets are regulated by the SEC.

The CFTC has gained significant expansion in its regulatory authority. The bill clearly defines ETH as a commodity, and truly decentralized public chain tokens are also regarded as commodities. Financing methods like IXO and SAFT are still under the jurisdiction of the SEC, but a $75 million exemption threshold has been established.

The bill recognizes the existence of digital goods, which will no longer be considered securities as long as they have practical value for the operation of public chains, DeFi, and DAOs. However, NFTs are still classified as assets.

The bill distinguishes between the process of token issuance and the operational process. IXO issuance is classified as a security, but if the issued tokens meet the criteria, they are not. Airdrop points are securities, but if the airdropped tokens meet the criteria, they are not. Exchange distributions are not securities, but promised returns are classified as securities.

Conclusion

The CLARITY Act is an important part of U.S. encryption regulation, clarifying definitions of core issues such as tokens and public chains. However, there are still gray areas in the DeFi space, and a dedicated DeFi act may be needed in the future.

At the same time, the progress of the Tornado Cash case will serve as a touchstone for judicial influence on legislation. The U.S. encryption regulatory framework is continuously improving, and its future development deserves ongoing attention.