Congress introduced the Digital Asset Market Clarity Act to codify digital commodity status for cryptocurrency tokens. The legislation would replace the 2026 agency interpretation with a permanent statutory framework. For more than a decade the United States lacked a clear rule to distinguish securities from commodities in the crypto market, leaving the industry in regulatory uncertainty. In March 2026 the Securities and Exchange Commission and the Commodity Futures Trading Commission issued a joint interpretive statement classifying sixteen major tokens as digital commodities, a designation that is not a law and can be reversed by a future administration. The act defines a digital commodity as a crypto asset whose value derives from the operation of a functional blockchain and from market supply and demand, rather than from promises of profit based on the managerial efforts of a sponsor. The definition excludes tokens that convey rights to future income, profits, or assets, characteristics that would make them resemble securities. The Howey test, derived from a Supreme Court decision, determines whether an investment contract exists by assessing whether profits are expected from the efforts of others. The CLARITY Act adds a maturity test that evaluates decentralization, network functionality, and the distribution of governance control to decide when a token may move from security to commodity status. If a token is classified as a digital commodity, it falls under the commodities regulator’s lighter oversight, enabling easier exchange listing and eligibility for spot exchange-traded funds. Commodity status reduces compliance burdens for issuers and institutions, allowing broader institutional participation and lowering barriers to product development. Conversely, a security classification subjects issuers to registration, disclosure, and trading restrictions, which can impede market access. The CLARITY Act has advanced through the House and a Senate committee but has not yet become law, so the statutory permanence the industry seeks remains uncertain. The definition of decentralization used in the maturity test is contested, and critics warn that the criteria may be too narrow or vague, creating potential for inconsistent application. The shift from securities to commodities also reduces investor protection requirements, raising concerns about exposure to manipulation and fraud. The outcome of the legislative process will determine whether crypto regulation in the United States moves from case‑by‑case enforcement to a clear, statutory framework.