US CLARITY Act could redefine Ethereum as a digital commodity—if Senate approves
A new US bill could change how Ethereum is regulated. The CLARITY Act, passed by the House of Representatives in July 2025, aims to classify ether as a digital commodity under certain conditions. But the proposal now faces a tough battle in the Senate after stalling twice before. The Act would create a clear legal category for blockchain tokens. It splits digital assets into three groups: digital commodities, investment contract assets, and payment stablecoins. Ethereum is listed among 16 tokens that could qualify as commodities if their networks meet the 'mature blockchain' standard.
Under the rules, a token becomes a digital commodity if its network is 'sufficiently decentralised' and fully operational. The Act defines these assets as ones whose value comes directly from the blockchain’s automated functions. If passed, ether would join bitcoin in the same legal category, with spot markets overseen by the CFTC.
However, the path forward is uncertain. The bill has already failed to advance twice in the Senate. Now, it heads to the Banking Committee, where lawmakers are expected to debate and amend the proposal in a contentious markup session. Even if approved, fundraising activities tied to Ethereum could still fall under SEC regulations. If the CLARITY Act becomes law, Ethereum would shift from regulatory ambiguity to a defined status. Spot trading would move under CFTC oversight, aligning it with bitcoin’s treatment. The Senate’s next steps will determine whether the changes take effect.
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