U.S. Representative Tom Emmer has reintroduced the bipartisan Securities Clarity Act alongside Congressman Darren Soto, aiming to establish clear regulatory guidelines for digital assets while maintaining consumer protections.
The legislation introduces the concept of an "investment contract asset" to distinguish between digital assets and the securities contracts through which they may be offered. This distinction would allow projects to evolve beyond their initial funding phase without remaining permanently classified as securities.
"Until we have a clear definition of what is a commodity and what is a security, American innovation will continue to suffer," said Congressman Emmer. "Entrepreneurs need clarity to calculate risk accurately, create new investment opportunities and grow our economy."
The bill addresses a key challenge in current securities laws, which do not differentiate between an asset and its associated securities contract. This has created obstacles for cryptocurrency projects that may initially raise capital through securities offerings but later become decentralized systems.
Representative Soto emphasized the bill's role in strengthening the U.S. digital asset market: "This bill will add critical definition and jurisdiction to create certainty for a strong digital asset market in the United States."
Industry leaders have expressed strong support for the legislation. The Blockchain Association, Chamber of Digital Commerce, Coin Center, and Crypto Council for Innovation have all endorsed the bill, viewing it as a step toward regulatory clarity.
The Securities Clarity Act was previously included in the Financial Innovation and Technology for the 21st Century (FIT21) Act, which passed the House of Representatives in May 2024. Its reintroduction demonstrates ongoing bipartisan commitment to establishing clear regulatory frameworks for digital assets while maintaining the United States' position as a leader in blockchain innovation.