Since the CLARITY Act has been proposed, splitting duties and assets between the SEC and CFTC has been very difficult. There has been no reliable way to determine whether a token is a security or a commodity, which can create loopholes and is a huge crack in the system.

The Digital Asset Market Clarity (CLARITY) Act was first introduced on May 29, 2025, by Arkansas Congressman French Hill and was designed to create a clear foundation for digital assets.