_FINANCIAL-OPERATIONS/

Anticipating the Clarity Act

October 22, 2025By Thierry Coopman · Product Specialist

Regulation

Stablecoins

Introduction

For years, digital asset businesses have operated under a cloud of uncertainty in the U.S. Would the SEC classify crypto tokens as securities, or would the CFTC step in? Until now, enforcement has often replaced rulemaking as the primary means of regulation.

The proposed Clarity Act is Washington’s attempt to end that ambiguity. By setting categories for digital commodities, securities-type assets, and permitted stablecoins, it promises to bring structure to an ecosystem that has been growing faster than its rulebook. For fintechs, platforms, and non-bank financial institutions (NBFIs), this could reshape not just compliance obligations but also market opportunity.

In this post, we’ll look at what’s on the table, how the Clarity Act might play out, and—most importantly—how your organization can position itself to move forward with confidence.

Why the Clarity Act Matters

The Clarity Act is a potential turning point for the digital asset industry in the U.S. For years, companies have watched as regulators sparred over jurisdiction, and that uncertainty raised costs and slowed investment. For businesses outside of the world of DeFi, the stakes are just as real. Stablecoins are seeing increased interest for cross-border settlement, digital rewards programs mimic tokenized assets, and treasuries explore blockchain rails for efficiency. Even companies that never set out to be “crypto firms” may find themselves touched by these rules.

In this context, the Clarity Act is significant because it represents a shift from reactive enforcement to proactive definition. By clarifying which assets fall under the SEC’s jurisdiction, which fall under the CFTC’s jurisdiction, and which qualify as regulated stablecoins, it could unlock a wave of investment and adoption. For NFBIs, it will determine how they design, reconcile, and report the digital asset flows already integrated into their business models.

What the Act Proposes

While the legislation is still being refined, there are some key attributes worth exploring. At its core, the Clarity Act aims to answer a deceptively simple question: what kind of asset are we dealing with? The bill, in its current state, introduces three main types of assets, each with its own oversight framework:

•Digital Commodities: Assets that are decentralized and do not confer profit rights, governance, or financial claims against an issuer. These fall under the Commodity Futures Trading Commission (CFTC). Examples include Bitcoin and Ethereum, which regulators have publicly treated as commodities.

•Restricted Digital Assets: Securities-like instruments that represent investment contracts or confer financial rights. These remain under Securities and Exchange Commission (SEC) jurisdiction. Tokens sold via SAFTs are a typical example.

•Permitted Payment Stablecoins: Fiat-redeemable assets designed for payments and value storage, typically backed 1:1 by U.S. dollars in cash deposits or other highly liquid assets. Oversight of this category may be shared between the SEC and CFTC.

Beyond classification, the Act also sets out operational requirements:

•Provisional registration regimes for exchanges, brokers, and custodians.

•Disclosure obligations to improve transparency for investors and regulators.

•Custody and record-keeping standards to ensure assets can be traced and reconciled.

One innovative idea from the act is the “mature blockchain system” designation. Once a network reaches a certain level of decentralization and governance, it could be treated more like a commodity system than a security. That opens the door for established ecosystems to operate with fewer disclosure burdens.

It’s important to note that the bill is still moving through the legislative process. Amendments are likely, and some provisions may change. But the direction is clear. Washington is moving from case-by-case enforcement to structured categories and obligations.

What Might Happen Next

Even with bipartisan momentum, the path from proposal to law is rarely straightforward. The Clarity Act will move through committees, amendments, and political bargaining before it reaches the president’s desk. Stablecoins will likely remain a flashpoint, with debates over reserves and consumer protections. Lawmakers may push for stricter reserve requirements, broader consumer protections, or carve-outs for specific industries.

In the short term, that means uncertainty lingers. Firms will still face overlapping regulatory expectations and should prepare for an interim period where enforcement continues under the current patchwork system. Compliance costs may even rise as companies try to anticipate the final shape of the law.

In the medium term, though, increased clarity has the potential to unlock growth. Institutional adoption has been slowed not by lack of interest, but by lack of guardrails. Once categories are set and oversight bodies are defined, investment and participation are likely to accelerate.

How Your Organization Should Prepare

The Clarity Act is still making its way through Congress, but waiting for the final version is a risky strategy. Now is the time to prepare your organization for what’s likely to come. Here are four steps to consider:

1. Assess Your Exposure

Start by mapping how your business currently touches digital assets.

•Do you hold or accept stablecoins for settlement?

•Offer tokenized rewards or credits?

•Manage custody or treasury flows involving digital assets?

Even if your core business isn’t crypto, you may find multiple touchpoints that fall within the Act’s scope.

2. Upgrade Compliance Posture

The Act leans heavily on disclosure, custody, and record-keeping. That means:

•Ledgers must be audit-grade: balances must be reproducible at any point in time.

•Transaction lineage must be transparent: every credit and debit must be traceable back to its source.

•Custody processes must be defensible: assets must be segregated, with clear rights of redemption.

Organizations that can already demonstrate these controls will be ahead of the curve when new requirements land.

3. Scenario Planning

Regulation will not be one-size-fits-all. Prepare for multiple outcomes:

•Assets classified as securities: expect SEC-style disclosures and investor protections.

•Assets treated as commodities: focus on market conduct, anti-manipulation, and reporting.

•Stablecoins recognized as permitted payment instruments: anticipate reserve, liquidity, and transparency obligations.

Scenario planning now avoids a scramble later.

4. Leverage Technology

Finally, use the right infrastructure. A ledger system like Formance Ledger designed for traceability, reconciliation, and immutability reduces the cost of compliance. Instead of layering on manual controls, organizations can rely on their core systems to deliver the transparency regulators demand.

In short, preparation isn’t about guessing the Act’s final text. It’s about ensuring your systems and processes can adapt, regardless of where the boundaries are drawn.

Don’t Wait for Clarity to Act

The Clarity Act won’t solve every regulatory question overnight, but it marks a turning point. For the first time, Washington is moving from case-by-case enforcement to a framework with defined categories and obligations. That alone changes the calculus for organizations that touch digital assets.

The real risk isn’t that the Act passes with unexpected provisions. Instead, companies often wait to prepare until the rules are already in force. By then, competitors who invested early in ledger integrity, compliance readiness, and scenario planning will be in the market, earning trust, and winning customers.

For fintechs and non-bank financial institutions, the message is simple: treat reproducibility, traceability, and auditability as non-negotiables today. If you can prove control and compliance now, you’ll be ready no matter how the final legislation lands.

Thierry CoopmanProduct Specialist