U.S. Bill Could Reclassify Ethereum as a Digital Commodity Like Bitcoin
A proposed U.S. law could soon reclassify Ethereum as a digital commodity, placing it under the same rules as bitcoin. The CLARITY Act has already cleared the House of Representatives but now faces a tough battle in the Senate. If passed, it would shift oversight of Ethereum’s spot markets from the SEC to the CFTC. The CLARITY Act aims to create clear legal categories for digital assets. It divides tokens into three groups: digital commodities, investment contract assets, and payment stablecoins. Under the bill, a token qualifies as a digital commodity if its network is 'sufficiently decentralized' and meets the 'mature blockchain' test.
Ethereum is explicitly listed among 16 tokens that would fall under this definition. The Act states that digital commodities derive value from the 'programmatic operation of a crypto system.' If approved, Ethereum’s spot markets would move to CFTC oversight, while the SEC would retain control over securities-style fundraising. The bill passed the House in July 2025 but has since stalled twice in the Senate. It now heads to the Banking Committee, where lawmakers are expected to debate its provisions intensely. If enacted, Ethereum would join bitcoin as a statutorily recognised digital commodity, ending years of regulatory uncertainty.
The Act’s passage would mark a major shift in how Ethereum is regulated in the U.S. Spot trading would fall under the CFTC, while the SEC would keep authority over initial token sales. The outcome of the Senate’s markup process will determine whether the law moves forward.
