EddieJayonCrypto
27 Mar 25
Congressman Tom Emmer reintroduced the Securities Clarity Act alongside Rep. Darren Soto to clarify the classification of digital assets under federal securities law. The bill aims to distinguish between an "investment contract" and the associated asset to address regulatory uncertainty in the digit...
Congressman Tom Emmer and Rep. Darren Soto reintroduced the Securities Clarity Act, aiming to define digital asset regulation and provide regulatory certainty. The bill seeks to distinguish between investment contracts and the underlying digital assets, addressing regulatory uncertainty and fostering innovation. It introduces the term "investment contract asset" to separate digital assets from investment contracts for evolving regulatory treatment. Emmer and Soto emphasize the need for clear definitions to support innovation and protect investors in the rapidly evolving digital asset space. The reintroduction of the Securities Clarity Act reflects growing congressional momentum to modernize digital asset regulation and clarify jurisdiction between regulatory agencies.
The bill aims to clearly distinguish between an “investment contract” and the asset associated with it, solving ongoing regulatory uncertainty that has hindered innovation in the digital asset space. The introduction of the term “investment contract asset” separates the underlying digital asset from the investment contract, allowing for regulatory treatment to evolve as the asset transitions to broader utility or decentralization.
Congressman Emmer emphasized that without clear definitions, entrepreneurs can’t accurately assess risks or launch compliant products, hindering investor participation in emerging technology. Rep. Soto echoed the sentiment, emphasizing the need for predictable rules that support both economic growth and responsible oversight.
The reintroduction of the Securities Clarity Act comes amid growing congressional interest in modernizing digital asset regulation. The bill was previously part of the FIT21 Act and signals continued momentum in Congress to clarify jurisdiction between regulatory agencies, particularly the SEC and the CFTC. Lawmakers from both parties increasingly acknowledge the need to define how securities laws apply to digital assets, viewing the Securities Clarity Act as a foundational step in ensuring the US remains a hub for blockchain innovation while protecting investors.