The U.S. House of Representatives has passed the Digital Asset Market Clarity Act of 2025, a sweeping piece of legislation that establishes a comprehensive regulatory framework for digital commodities and blockchain-based financial systems. The bill now moves to the Senate for consideration.
Introduced by Representative French Hill (R-AR) and backed by a bipartisan coalition, H.R. 3633—also called the CLARITY Act—seeks to resolve long-standing jurisdictional uncertainties by clearly defining the roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in overseeing digital asset markets.
The bill was advanced through both the House Financial Services and Agriculture Committees before receiving approval on the House floor today. It features over 500 pages of provisions designed to regulate how digital commodities—such as cryptocurrencies—are issued, traded, and safeguarded.
Key aspects of the bill include the creation of a dual registration system for digital commodity brokers, dealers, and exchanges, along with provisional registration pathways to encourage innovation while ensuring compliance. The legislation also introduces clear definitions for terms like “blockchain,” “digital asset,” “mature blockchain system,” “digital commodity issuer,” and “permitted payment stablecoin.”
One of the bill’s most notable components is its effort to draw a bright line between digital commodities and securities. Under the CLARITY Act, the SEC would retain oversight of digital assets considered securities, while the CFTC would gain expanded authority over digital commodities. This includes newly defined digital commodity exchanges and decentralized finance (DeFi) trading protocols.
The measure also provides exemptions for certain transactions, such as those involving mature blockchain systems not under centralized control. Additionally, the bill explicitly excludes from regulation digital assets that serve purely as rewards or collectibles, such as loyalty points, game items, and NFTs tied to intellectual property.
Several studies and rulemakings are mandated under the legislation, including reviews of DeFi systems, NFTs, illicit use of digital assets, and foreign adversary involvement in digital financial infrastructure. The bill also calls for the modernization of SEC and CFTC technologies, as well as enhanced international cooperation and application of the Bank Secrecy Act to digital assets.
With its passage, supporters say the legislation represents a major step toward regulatory clarity and investor protection in the fast-evolving crypto landscape. Representative Hill said the bill is “a vital step to ensure America leads in blockchain innovation while protecting consumers and the integrity of our financial markets.”
The Senate’s timeline for consideration remains uncertain, but the bipartisan nature of the legislation and growing calls for crypto regulation could lead to movement before the end of the legislative session.
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