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Matthias Knab, Opalesque for New Managers:

Key Takeaways

• As currently drafted, the CLARITY Act would broaden definitions of Commodity Pool Operator (CPO) and Commodity Trading Advisor (CTA) to include digital asset activities. • Most fund managers investing in crypto may be required to register with the CFTC. • Exemptions are narrow and unlikely to apply to typical digital asset managers. • Registration could impose significant new reporting, compliance, and operational obligations. Background

On May 29, 2025, the U.S. House introduced the Digital Asset Market CLARITY Act (H.R. 3633), which aims to create a formal regulatory structure for digital assets. It passed the House in July 2025 and awaits Senate review. While the bill focuses on market oversight and agency jurisdiction, one provision could reshape how crypto-focused fund managers are regulated.

Expanded Scope of CPO and CTA Definitions

Section 103 of the CLARITY Act would amend definitions under the Commodity Exchange Act to include "digital commodities." This could trigger registration requirements for fund managers and advisers who trade or advise on digital assets-even if they're not derivatives. A "digital commodity" is broadly defined to include most blockchain-based assets, not just tokenized securities or derivatives.

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