The Senate Banking Committee voted to advance the CLARITY Act on May 14, marking a procedural milestone in the long-stalled effort to establish a formal regulatory framework for digital assets. The bill attempts to delineate jurisdiction between the SEC and CFTC over crypto assets, with significant consequences for how tokens are classified and who oversees trading and lending activity. The measure still faces a full Senate vote and potential House reconciliation.
For Armada's crypto repo desk, the classification outcome is material: if BTC, ETH, or SOL are designated commodities under CLARITY, CFTC oversight would govern collateral arrangements, affecting margin rules, custody requirements, and counterparty obligations. The no-rehypothecation policy and Fireblocks custody structure may need to be reviewed against whichever regime prevails. Family office and hedge fund clients will also seek guidance on how their collateral agreements are affected.