On March 26, Congressman Tom Emmer, together with Rep. Darren Soto, reintroduced the Securities Clarity Act, breathing new life into a bipartisan initiative aimed at clarifying how digital assets are classified under federal securities law.
The primary objective of this legislation is to draw a clear distinction between an “investment contract” and the related underlying asset—an area that lies at the center of persistent regulatory ambiguity, which has stifled innovation within the digital asset sector.
A Clear Distinction Between Tokens and Securities
At the heart of the proposal is the introduction of the term “investment contract asset.”
This new category would differentiate the underlying digital asset from the investment contract associated with it, allowing regulatory frameworks to adapt as the asset evolves towards greater utility or decentralization.
Emmer stated:
“Without clear definitions, entrepreneurs struggle to accurately evaluate risks or bring compliant products to market. Our legislation aims to rectify that, enabling investors to engage fully with this emerging technology while maintaining consumer protections.”
Soto supported this viewpoint, highlighting the necessity for predictable guidelines that promote both economic advancement and responsible oversight. “This bill provides essential clarity in a rapidly changing environment and helps safeguard investors while encouraging innovation,” he noted.
Legislative Progress
The reintroduction of the Securities Clarity Act occurs against the backdrop of increasing congressional interest in updating digital asset regulations during the administration of President Donald Trump.
Previously, the bill was included in the Financial Innovation and Technology for the 21st Century (FIT21) Act, which successfully passed the House of Representatives in May 2024 with bipartisan backing.
Its return indicates ongoing momentum within Congress to delineate clearer responsibilities between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), two agencies that have frequently encountered disputes over the regulation of digital assets.
Lawmakers from both parties are increasingly recognizing the imperative to clarify how securities laws pertain to digital assets, particularly as international competitors implement more sophisticated regulatory structures.
Many view the Securities Clarity Act as a crucial step within a broader legislative framework designed to ensure that the U.S. remains a leader in blockchain innovation while also protecting investors.