The CLARITY Act has been introduced to streamline cryptocurrency regulation in the United States by delineating responsibilities between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). This legislative proposal aims to provide a clearer regulatory framework for digital assets, potentially reducing uncertainty for market participants. Under the proposed act, the SEC would oversee securities-related digital assets, while the CFTC would regulate commodities-related digital assets. This division of oversight is intended to enhance regulatory clarity and foster innovation within the crypto industry by providing distinct guidelines for compliance.