Digital Asset Market Clarity Act
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The bill would create a comprehensive federal framework for regulating digital assets, splitting authority between the Securities and Exchange Commission and the Commodity Futures Trading Commission based on whether a crypto asset's underlying blockchain is 'mature' or still developing, and would set registration, custody, and anti-money-laundering rules for exchanges, brokers, and dealers.
It would also bar the Federal Reserve from issuing a central bank digital currency or offering accounts directly to individuals. Together these provisions represent one of the most far-reaching attempts yet to write comprehensive federal rules for the cryptocurrency industry.
What this bill would do
What it would do
The bill would establish a dual regulatory system for digital assets: the Securities and Exchange Commission would oversee digital commodities during their early, less-decentralized phase and permitted payment stablecoins, while the Commodity Futures Trading Commission would regulate digital commodity exchanges, brokers, and dealers once a blockchain is certified 'mature' (no longer controlled by any person or group). It would create new registration categories, require qualified custodians for customer digital assets, apply Bank Secrecy Act anti-money-laundering rules to digital commodity exchanges and intermediaries, exempt smaller token offerings from full securities registration, and set core-principle standards for exchanges covering trade monitoring, recordkeeping, conflicts of interest, and segregation of customer funds. The bill would not regulate decentralized finance software, self-custody wallets, or blockchain developers who lack control over user funds, and it preserves existing rules for securities, commodities, and derivatives unrelated to digital assets. A separate title would prohibit the Federal Reserve from issuing a central bank digital currency, offering products directly to individuals, or using such a currency for monetary policy.
Key provisions
- 1Would define 'digital commodity,' 'blockchain system,' 'mature blockchain system,' and related terms across securities and commodities law
- 2Would exempt smaller token offerings (up to $50 million annually) from full SEC registration if issuers meet disclosure and maturity requirements
- 3Would create a new CFTC registration and core-principles regime for digital commodity exchanges, brokers, and dealers, including customer fund segregation and qualified custodians
- 4Would apply Bank Secrecy Act anti-money-laundering requirements to digital commodity exchanges, brokers, and dealers
- 5Would exclude decentralized finance software, self-custody wallets, and non-controlling blockchain developers from SEC and CFTC regulation
- 6Would prohibit the Federal Reserve from issuing a central bank digital currency or offering financial products directly to individuals
- 7Would require multiple federal studies on decentralized finance, non-fungible tokens, financial literacy, and illicit use of digital assets
Who would be affected
Cryptocurrency exchanges, brokers, and dealers; digital asset issuers and their affiliates; banks and trust companies seeking to custody digital assets; retail and institutional crypto investors; the Securities and Exchange Commission and Commodity Futures Trading Commission, which would gain new regulatory duties; and the Federal Reserve, which would face new restrictions.
Why it matters
Crypto businesses would gain long-sought legal clarity on which federal regulator oversees them and how to register, potentially unlocking mainstream institutional participation. Investors would gain new disclosure and custody protections, but the bill's complex maturity-certification process and phased effective dates mean full implementation could take years and depend heavily on SEC and CFTC rulemaking.
What would change
Changes to existing law
Amends Securities Act of 1933 (Sec. 101, Sec. 202, Sec. 301)
Adds definitions for digital assets and blockchain terms, creates a new exemption for digital commodity offerings, and excludes digital commodities from the 'security' definition
Amends Securities Exchange Act of 1934 (Sec. 205, Sec. 302, Sec. 303)
Adds a blockchain maturity certification process, permits alternative trading systems to trade digital commodities, and creates anti-fraud authority over digital commodity transactions
Amends Commodity Exchange Act (Sec. 401-412)
Creates new registration categories for digital commodity exchanges, brokers, and dealers, and gives the CFTC exclusive jurisdiction over digital commodity spot markets
Amends Bank Secrecy Act (Sec. 110)
Extends anti-money-laundering and customer identification requirements to digital commodity exchanges, brokers, and dealers
Amends Federal Reserve Act (Sec. 602-604)
Prohibits Federal Reserve banks from issuing a central bank digital currency or offering accounts/products directly to individuals
Amends GENIUS Act (Sec. 512)
Makes conforming changes to stablecoin issuer definitions and adds provisions for commodity-backed payment stablecoins and self-custody protections
Amends Bank Holding Company Act of 1956 (Sec. 312)
Classifies digital commodity activities as financial in nature, permitting bank holding companies to engage in them
Agencies directed to act
Effective dates
- Title II offer-and-sale provisions for digital commodities
- Title III SEC intermediary registration provisions
- Title IV CFTC intermediary registration provisions
- CFTC expedited registration process for exchanges, brokers, dealers
- Reduction to the Federal Reserve's discretionary surplus fund
Funding and costs
- $15,000,000
Reduction to the Federal Reserve's discretionary surplus fund amount
Congressional Budget Office estimate
CBO estimates that H.R. 3633, the CLARITY Act of 2025, would increase direct spending by $159 million and revenues by $13 million over the 2025–2035 period, resulting in a net increase in the deficit of $146 million.
CBO estimates that enacting H.R. 3633 would increase direct spending (mandatory outlays) by $159 million and revenues by $13 million over the 2025–2035 period, producing a net increase in the federal deficit of $146 million. The main cost drivers are new regulatory responsibilities assigned to the Securities and Exchange Commission and the Commodity Futures Trading Commission to oversee digital asset markets; additional discretionary funding for both agencies would also be needed but is subject to appropriations. CBO identified intergovernmental and private-sector mandates in the bill but determined that their costs would fall below the statutory thresholds established in the Unfunded Mandates Reform Act.
How implementation would work
The SEC and CFTC would jointly define key terms and issue rules on timelines ranging from 90 to 360 days after enactment, covering exchange registration, custody standards, delisting procedures, and conflict-of-interest requirements. Digital commodity exchanges, brokers, and dealers would register through an expedited process and operate under 'provisional status' until final rules take effect. Issuers could certify their blockchain as 'mature' through an SEC review process with public comment and appeal rights. The CFTC would collect registration fees to fund enforcement, and multiple GAO and Treasury studies on decentralized finance, NFTs, and illicit use of digital assets would be due to Congress within one year.
Legislative status & sources
Latest action
Placed on Senate Legislative Calendar under General Orders. Calendar No. 423.
Official CRS summary
Show the CRS summaryHide the CRS summary
This bill establishes a regulatory framework for digital commodities, defined by the bill as digital assets that rely upon a blockchain for their value.
The Commodity Futures Trading Commission must generally regulate digital commodities transactions, including digital commodity exchanges, brokers, and dealers. To qualify for trade on an exchange (1) a digital commodity’s blockchain must be mature, or on a blockchain system that has achieved decentralized control as defined by the bill; or (2) the issuer of the digital commodity must file certain reports. The bill establishes requirements for trade monitoring, recordkeeping, and the commingling of customer assets.
The bill exempts digital commodities on mature blockchains (and digital commodities on blockchains expected to mature within certain timeframes) from Securities and Exchange Commission (SEC) registration requirements if annual sales fall under a certain amount and other requirements are met. The bill provides the SEC with jurisdiction over digital commodity activities and transactions engaged in by certain brokers and dealers on alternative trading systems and by national securities exchanges.
Digital commodity exchanges, brokers, and dealers are subject to the Bank Secrecy Act for anti-money laundering and related purposes.
The bill also sets forth requirements for alternative trading systems, previously issued digital commodities, and provisional registration until the bill is implemented.
For more information on this bill, see CRS Insight IN12583, Crypto Legislation: An Overview of H.R. 3633, the CLARITY Act.
Legislative subjects
Advanced technology and technological innovations; Bank accounts, deposits, capital; Banking and financial institutions regulation; Business records; Computer security and identity theft; Computers and information technology; Currency; Data collection, sharing, protection; Digital media; Finance and Financial Sector; Financial services and investments; Fraud offenses and financial crimes; Licensing and registrations; Securities
Committee report
H. Rept. 119-168,Part 1