Published & Updated: January 23, 2026 | Tapbit Regulatory & Compliance Desk
The U.S. Senate is currently reviewing the Digital Asset Market Clarity Act (CLARITY Act) and the related GENIUS Act, two landmark bills that aim to finally define jurisdiction between the SEC and CFTC for digital assets. The CLARITY Act seeks to classify tokens as either “investment contracts” (SEC oversight) or “digital commodities” (CFTC spot market authority) based on blockchain maturity and the Howey test. Meanwhile, the GENIUS Act introduces sweeping reforms for stablecoins, including yield restrictions, Treasury freeze powers, and stricter issuer requirements. These bills — delayed in markup as of mid-January 2026 — could reshape the entire U.S. crypto landscape, determining which projects remain compliant and which face enforcement risk. This guide provides a clear breakdown of both acts, the token classification test, stablecoin implications, likely “SEC-safe” assets in 2026, and how Tapbit traders can position responsibly amid the evolving regulatory environment.
Clarity Act vs GENIUS Act – Quick Comparison Table
| Aspect | Clarity Act (Token Classification) | GENIUS Act (Stablecoin Reform) |
|---|---|---|
| Jurisdiction | SEC: investment contracts CFTC: digital commodities on mature blockchains | Primarily CFTC + Treasury oversight |
| Key Test | Howey (investment of money, common enterprise, profit from others’ efforts) | Issuer licensing, reserve audits, yield caps |
| Mature Blockchain Definition | Decentralized, no central issuer control, widely distributed | N/A (focus on stablecoin issuers) |
| Stablecoin Impact | Most stablecoins likely fall under SEC if yield-bearing | Yield restrictions, Treasury freeze powers, AML/KYC tightening |
| Exchange Rules | SEC registration for security tokens; CFTC for commodity spot markets | Stricter issuer compliance → fewer compliant stablecoins |
| Status (Jan 2026) | Senate markup delayed | Companion bill, similar timeline |
Clarity Act Breakdown: SEC vs CFTC Jurisdiction Split
The core of the Clarity Act is a two-pronged classification test:
- Howey Test (SEC jurisdiction)
A token is an investment contract if it meets all four prongs:- Investment of money
- In a common enterprise
- With expectation of profits
- Primarily from the efforts of others
- Mature Blockchain Certification (CFTC jurisdiction)
If a token passes Howey but runs on a “mature” decentralized blockchain (no single entity control, widely distributed nodes, no ongoing issuer promises), it qualifies as a digital commodity under CFTC spot market authority.
Result: Bitcoin and Ether are already widely viewed as digital commodities. Many newer Layer-1 tokens and utility tokens could qualify post-decentralization, while most ICO-era tokens remain SEC securities.
GENIUS Act: Stablecoin Overhaul & Yield Restrictions
The GENIUS Act focuses on stablecoins, introducing:
- Strict issuer licensing & monthly reserve audits
- Yield generation limits (no more high-APY stablecoins)
- Treasury authority to freeze non-compliant issuers
- Enhanced AML/KYC requirements
- Potential grandfathering for existing issuers (USDC, USDT likely compliant)
Implication: Yield-bearing stablecoins face existential risk; plain vanilla stablecoins gain regulatory clarity.
Which Tokens Are Likely “SEC-Safe” in 2026?
- Bitcoin (BTC) — already CFTC commodity
- Ethereum (ETH) — mature blockchain, post-Pectra staking decentralization
- Most major Layer-1s (SOL, ADA, AVAX) — if sufficiently decentralized
- Tokens with no ongoing issuer promises or centralized control
Tokens at risk: ICO-era utility tokens, yield-bearing stablecoins, centralized governance projects.
Tapbit Trading & Compliance Positioning in the Clarity/GENIUS Era
- Create your Tapbit account (0% maker fees)
- Deposit USDT via P2P or card
- Spot strategy: Accumulate BTC/ETH on regulatory clarity dips
- Futures momentum: Long ETH/USDT perpetuals on CFTC commodity confirmation news (20–50x leverage, isolated margin)
- Stablecoin hedge: Shift to compliant USDC/USDT pairs if GENIUS passes
- Risk control: Max 1–2% account risk per trade; use isolated margin
Conclusion
The Clarity Act and GENIUS Act — currently delayed in Senate markup as of January 2026 — represent the most significant U.S. crypto regulatory framework since 2021. Clarity divides tokens into SEC investment contracts and CFTC digital commodities based on the Howey test and blockchain maturity, while GENIUS imposes strict rules on stablecoin issuers (yield limits, audits, freeze powers). Bitcoin and Ethereum are positioned as clear winners under CFTC oversight, while many altcoins and yield-bearing stablecoins face uncertainty.
Trade BTC, ETH & compliant pairs on Tapbit amid regulatory clarity:
- Sign Up on Tapbit (0% spot trading fees)
- Login & Deposit
- Live BTC/USDT, ETH/USDT & Stablecoin Pairs
Disclaimer: This article is for informational purposes only and does not constitute legal, financial, investment or regulatory advice. U.S. crypto legislation is subject to change and may impact asset classification and trading. Always consult qualified professionals for your specific situation. Cryptocurrency markets are highly volatile — never invest more than you can afford to lose completely.
