Washington’s new crypto bill would strip states of power – legally bans oversight that catches front-end manipulation

The Digital Asset Market Clarity Act of 2025 (CLARITY Act), which has passed the House and is heading for a Senate markup, seeks to resolve regulatory turf wars between the SEC and CFTC and establish a durable rulebook for digital assets. Key provisions include a broad carve-out for decentralized finance (DeFi) infrastructure, stating that activities like operating nodes, running liquidity pools, or providing software wallets do not automatically classify an entity as a regulated intermediary. However, this exclusion explicitly does not apply to anti-fraud and anti-manipulation authority, meaning bad actors can still be pursued. The second major component is a preemption clause that would treat "digital commodities" as "covered securities," effectively overriding state-by-state securities regulation for these assets to create a unified national market. Critics argue this weakens state regulators who often act quickly against scams, while supporters claim uniformity is necessary for workable compliance. The upcoming Senate markup will be crucial in defining the boundaries of the DeFi safe harbor, particularly regarding user interfaces that also route orders, and determining the final scope of federal preemption over state consumer protection efforts.

(Source：CryptoSlate)