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The CLARITY Act would classify Ethereum as a digital commodity under CFTC, ending SEC's security claims.

Market News
21 May 2026
Crypto news
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Bullish
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The Digital Asset Market Clarity Act of 2025 (CLARITY Act) proposes to officially classify Ethereum as a digital commodity regulated by the Commodity Futures Trading Commission (CFTC), removing the SEC's ability to label ETH as a security. This bill sets clear criteria for digital assets, naming Ethereum among 16 tokens treated as commodities if their networks are sufficiently decentralized and mature. It shifts spot ETH markets under CFTC oversight while leaving securities-style fundraising under SEC rules, clarifying regulatory jurisdiction and reducing legal uncertainty. The Act also protects decentralized protocol activities from heavy regulation but requires centralized platforms handling ETH to comply with commodity market rules. Although passed by the House, the bill is still pending Senate approval and is not yet law, meaning Ethereum's regulatory status remains uncertain until then.

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