# Your Guide to U.S. Crypto Regulatory Developments *The CLARITY Act, Project Crypto, Senate Updates, and more* By [Tally](https://blog.tally.xyz) · 2025-09-02 --- The United States is reshaping how regulators approach crypto. Since July, The CLARITY Act passed the U.S. House of Representatives, the SEC launched Project Crypto, and the Senate Banking Committee released a draft of its Digital Asset Market Structure Legislation with a request for information from industry builders.  Staying up to date on regulatory developments prepares teams to remain competitive if regulation is signed into law. Tally tracks the latest updates and is building best-in-class compliance infrastructure for protocols to capitalize on the regulated crypto era. Let’s take a look at everything that’s happened so far.  **The CLARITY Act Passes the House** ------------------------------------ The CLARITY Act officially passed the U.S. House of Representatives, marking a turning point for token projects, policy advocates, and decentralized governance ecosystems. > "**_The CLARITY Act will catalyze a New Golden Age of Tokens; where transparency, decentralization, and regulatory alignment are foundational._"** ([The CLARITY Act of 2025: A New Golden Age of Tokens](https://blog.tally.xyz/the-clarity-act-of-2025-a-new-golden-age-of-tokens)) The Act establishes a two-phase regulatory pathway: tokens begin as investment contracts under SEC oversight where "_issuers can raise up to $75 million within a 12-month window_," then transition to "_digital commodities_" regulated by the CFTC once protocols meet decentralization criteria, including "_no single entity or affiliated group controls more than 20% of the token supply or governance power_." The CLARITY Act’s framework would create a structured path for protocol teams to access U.S. institutional capital while building toward decentralization, replacing regulatory uncertainty with clear compliance standards. The Act also "_clarifies secondary market trading of tokens previously issued in a securities offering will not be treated as securities transactions_" once they achieve commodity status, removing barriers to U.S. exchange listings and institutional adoption that previously may have forced projects offshore. **Next steps:** The CLARITY Act moves to the Senate, where Senate Banking Committee Chairman Tim Scott has developed a competing bill (the [Responsible Financial Innovation Act of 2025](https://www.banking.senate.gov/imo/media/doc/senate_banking_committee_digital_asset_market_structure_legislation_discussion_draft.pdf)) that builds on the CLARITY Act but introduces key changes. Senator Cynthia Lummis [indicated](https://cointelegraph.com/news/senator-cynthia-lummis-crypto-market-structure-bill-timeline) that while the Senate wants to "_honor as much of the House's work as we can_," the final legislation will likely be "_CLARITY as tweaked by the Senate_.”  Senator Scott faces a September 30 deadline to advance his bill out of committee, with potential floor action and reconciliation with the House version expected in late 2025 or early 2026. **For more on The CLARITY Act:** * [What Does the CLARITY Act Mean for Your Token?](https://blog.tally.xyz/what-does-the-clarity-act-mean-for-your-token) * [The CLARITY Act of 2025: A New Golden Age of Tokens](https://blog.tally.xyz/the-clarity-act-of-2025-a-new-golden-age-of-tokens) * [Is Your Protocol a Mature Blockchain System Under the CLARITY Act?](https://blog.tally.xyz/is-your-protocol-a-mature-blockchain-system-under-the-clarity-act) **Project Crypto** ------------------ On July 31st, 2025, SEC Chairman Paul Atkins announced Project Crypto, an initiative to "_modernize the securities rules and regulations to enable America's financial markets to move on-chain._" The initiative focuses on three critical areas for protocol teams:  1. Establishing "_clear guidelines that market participants can use to determine whether a crypto asset is a security_" to end confusion around token classification. 2. Creating "_a path for software developers to unleash on-chain software systems that do not require operation by any central intermediary_" with protected status for decentralized protocols. 3. Implementing "_an innovation exemption that would allow registrants and non-registrants to quickly go to market with new business models_." For protocol teams, Project Crypto represents a shift from enforcement-based regulation to frameworks designed to enable compliant innovation. Chairman Atkins declared "_the days of convoluted offshore corporate structures, decentralization theater, and confusion over security status, are over._" Additionally, Tally’s CRO, Tyler, participated in a roundtable discussion with SEC Commissioner Hester Pierce at the Science of Blockchain Conference. They focused on creating regulatory clarity that keeps blockchain developers building in the U.S. Tyler emphasized Tally’s view that clear, actionable definitions of decentralization are essential for projects to navigate compliance. **For more on Project Crypto:** * [What you need to know about the SEC's project crypto](https://blog.tally.xyz/what-you-need-to-know-about-the-secs-project-crypto) * [Project Crypto Twitter Thread](https://x.com/tallyxyz/status/1956381176161075662) * [Tyler's recap of the roundtable with Hester Peirce](https://open.spotify.com/episode/1uUG7oRmFqsEnqKQedTnVE?si=567404671d014f05) * [SEC Chairman Paul Atkins remarks at the Wyoming Blockchain Symposium](https://www.youtube.com/live/34fdBEy2Ibk) **Senate Banking Committee Market Structure RFI** ---------------------------------------------------- The Senate Banking Committee released a discussion draft of its [Digital Asset Market Structure Legislation](http://banking.senate.gov/imo/media/doc/market_structure_rfi.pdf) with a Request for Information seeking industry input on jurisdictional clarity, decentralization standards, and Safe Harbor provisions.  Tally submitted a response advocating for "_spelling out the jurisdiction questions in legislation instead of deferring to the SEC_" to provide certainty for "_distributed-ledger-based assets like network and protocol tokens_" and proposing "_quarterly progress reporting on: decentralization metrics, technical maturity milestones, governance evolution, and network independence_" to create measurable pathways for protocols transitioning from securities to commodity status.  The response emphasized supporting "_the CLARITY Act defining a mature blockchain system as one where no person or group of persons under common control has the unilateral authority, directly or indirectly, to control or materially alter the functionality or operation of the blockchain system_." The RFI was a direct opportunity for protocol teams to influence regulatory frameworks, signalling a shift toward collaborative policymaking that incorporates technical expertise from the teams developing these systems. **Looking ahead** ----------------- The CLARITY Act, Project Crypto, and Senate Banking Committee aim to bring clarity to token launches, institutional participation, and compliance requirements for crypto protocols.Teams that prepare for these frameworks may be better positioned to capitalize on regulatory clarity, potentially accessing U.S. institutional capital while reducing compliance risks as new rules develop Tally is building best-in-class infrastructure for the world's most valuable networks to meet compliance standards with confidence. To learn more or get started reach out at [tally.xyz/contact](http://tally.xyz/contact). --- *Originally published on [Tally](https://blog.tally.xyz/your-guide-to-us-crypto-regulatory-developments)*