Congressman Tom Emmer reintroduced the Securities Clarity Act on March 26 alongside Rep. Darren Soto, reviving a bipartisan effort to clarify the classification of digital assets under federal securities law.
The bill aims to clearly distinguish between an “investment contract” and the asset associated with it — an issue at the heart of ongoing regulatory uncertainty that has hindered innovation in the digital asset space.
Clear line between tokens and securities
At the core of the legislation is the introduction of the term “investment contract asset.”
This designation would separate the underlying digital asset from the investment contract through which it may have been initially offered, allowing for regulatory treatment to evolve as the asset itself transitions to broader utility or decentralization.
According to Emmer:
“Without clear definitions, entrepreneurs can’t accurately assess risks or launch compliant products. Our legislation helps fix that so investors can fully participate in this emerging technology without sacrificing consumer protections.”
Soto echoed that sentiment, emphasizing the need for predictable rules that support both economic growth and responsible oversight. “This bill adds much-needed certainty to a fast-evolving space and helps protect investors while fostering innovation,” he said.
Legislative momentum
The Securities Clarity Act’s reintroduction comes amid growing congressional interest in modernizing digital asset regulation under President Donald Trump’s administration.
The bill was previously incorporated into the Financial Innovation and Technology for the 21st Century (FIT21) Act, which passed the House of Representatives in May 2024 with bipartisan support.
Its reappearance signals continued momentum in Congress to establish clearer jurisdiction between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), two agencies that have often clashed over oversight of digital assets.
Lawmakers from both parties have increasingly acknowledged the need to define how securities laws apply to digital assets, especially as global competitors adopt more advanced regulatory frameworks.
Many see the Securities Clarity Act as a foundational step in a broader legislative strategy to ensure the US remains a hub for blockchain innovation while protecting investors.
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