CLARITY Act

Benefits

Reduces legal uncertainty for issuers, developers, intermediaries; strengthens investor protections and market integrity; fosters responsible innovation; provides regulatory certainty; advances American innovation and leadership in global financial system

Full Name

Digital Asset Market Clarity Act of 2025

Bill Number

H.R.3633

Short Title

CLARITY Act of 2025

Primary Goal

Establish a comprehensive regulatory framework for digital asset markets

CFTC Oversight

Primary regulatory oversight authority over spot digital commodities

Key Provisions

Defines jurisdictional boundaries for SEC and CFTC, introduces tailored registration and compliance regimes, implements new regulatory obligations for listing and trading practices, mandates robust compliance standards, requires developer disclosures

Legislative Body

U.S. House of Representatives

Regulatory Approach

Dual-agency oversight by SEC and CFTC

Asset Classification

Divides crypto assets into digital commodities, investment contract assets, and permitted payment stablecoins

Congressional Session

119th Congress (2025-2026)

2024

2025-07

The CLARITY Act represents a significant step in building a coherent and functional regulatory framework for U.S. digital asset markets. By clearly defining asset categories and assigning regulatory responsibilities to the SEC and CFTC, the CLARITY Act reduces legal uncertainty for issuers, developers, and intermediaries, while strengthening investor protections and market integrity. It also aligns the U.S. with other major jurisdictions that have introduced dedicated frameworks for digital [...] This bulletin summarizes the key provisions of the Digital Asset Market Clarity Act of 2025 (the “CLARITY Act”), a U.S. federal bill that establishes a comprehensive regulatory framework for the classification, offering, trading, and supervision of digital assets. The CLARITY Act seeks to define clear lines of jurisdiction between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), mandate robust compliance standards for digital asset trading [...] The CLARITY Act passed the House with bipartisan support today, July 17, 2025, following its earlier advancement by the Financial Services and Agriculture Committees this month. The CLARITY Act builds upon the principles of the earlier Financial Innovation and Technology for the 21st Century Act and is viewed as the House’s principal crypto market structure legislation. At its core, it introduces a dual-agency approach to oversight.

V. Conclusion The CLARITY Act marks a significant development toward establishing a regulatory framework for digital assets in the United States. By establishing jurisdictional boundaries for the SEC and CFTC, introducing tailored registration and compliance regimes, and implementing new regulatory obligations for listing and trading practices, the Act seeks to foster responsible innovation while improving market integrity and investor protection. [...] The Act builds on the Financial Innovation and Technology for the 21st Century Act (FIT21), which passed the House in 2024 with bipartisan support. FIT21 laid the groundwork for progress in the digital asset space by defining digital asset categories and assigning regulatory roles to the SEC and CFTC. CLARITY expands and codifies those principles, introducing statutory definitions and operational rules for issuers, intermediaries and exchanges involved in the issuance, custody and trading of [...] CLARITY amends the Commodity Exchange Act to provide the CFTC with primary regulatory oversight authority over spot digital commodities. This is primarily achieved through the registration and regulation of DCBs, DCDs and DCEs. The Act also includes guidance on the listing and review process for new digital commodities and introduces the concept of a qualified digital asset custodian to hold digital assets on behalf of a person or customer of a person registered under CLARITY. This significant

The Digital Asset Market Clarity (CLARITY) Act establishes clear, functional requirements for digital asset market participants, prioritizing consumer protection while fostering innovation. By providing strong safeguards and long-overdue regulatory certainty, the legislation advances American innovation and reinforces America’s leadership in the global financial system. Why is the CLARITY Act needed? • Digital assets and related blockchain technology have the potential to form the foundation of [...] participants will have a trusted pathway to trade digital commodities through intermediaries and exchanges overseen by the CFTC. The CLARITY Act will provide clarity to customer-facing digital asset firms: • Establishes clear lines between the two market regulators: SEC and CFTC. • Creates comprehensive registration regimes to permit digital asset firms to lawfully serve customers in digital asset markets. [...] developers, and consumers. • Now is the time to deliver that clarity and protections for Americans. • The CLARITY Act is essential to restoring confidence, encouraging innovation, and keeping businesses in the United States. The CLARITY Act will protect consumers by strengthening transparency and accountability for market participants: • Developers will be required to provide accurate, relevant disclosures, including information relating to the digital asset project’s operation, ownership, and

The CLARITY Act seeks to establish a clear regulatory framework for crypto markets and close existing regulatory gaps resulting from regulation by enforcement. At its core, the Act’s principle mechanism to achieve that end is to divide crypto assets into three categories — (1) digital commodities, (2) investment contract assets, and (3) permitted payment stablecoins — and define the regulatory obligations of the CFTC and the SEC based on those categories. The purpose is to separate token-based [...] Whatever form a crypto market structure bill takes once enacted, it will mark a significant turning point for the development, operation, and regulation of crypto in the U.S. The CLARITY Act, as currently drafted, attempts to provide legal certainty around token classification, capital raising, and post-sale treatment long sought by the crypto industry, all while reducing the risk of regulation by enforcement. Traditional financial institutions stand to benefit from clarified rules for digital [...] The CLARITY Act, in particular, seeks to define and rationalize the boundaries of SEC and CFTC jurisdiction, curing a source of significant regulatory friction and legal uncertainty in recent years. With each agency staking expansive claims to digital asset oversight, the resulting turf battle has led to divergent views on how crypto assets should be classified and which rules should apply, especially in the context of capital raising, trading, custody, and decentralized finance. The CLARITY